Platinum tumbled to its lowest level in more than six months on Tuesday, extending a 6-percent drop in the previous session, on fears of falling demand from automakers, while gold hovered below $900 on weaker oil.
Platinum prices have taken a dramatic turn since spiking to a record high above $2,000 an ounce in March, losing much of their gains to profit taking and a slowing US economy that threatens to slash demand for autocatalysts. Spot platinum fell as low as $1,530.00 an ounce, its weakest since late January, before bouncing to $1,541.50/1,561 an ounce on light buying from jewellers - still down from $1,551.00/1,571.00 late in New York on Monday.
Platinum was battered by worries about a slowdown in the car industry after US car sales slipped to a 16-year low in July, led by a 27 percent drop at General Motors Corp Autocatalysts account for more than 60 percent of global demand. Automobile manufacturers use the metal to help scrub environmentally-damaging substances from car exhaust fumes.
Gold edged down to $893.05/894.05 an ounce from $895.55/896.95 late in New York. It hit an intraday low of $891.85 on Tuesday, its lowest level in nearly six weeks, after oil prices tumbled, which reduced its safe haven appeal. Spot palladium rose to $354.00/362.00 an ounce from $349.50/357.50 late in New York. Silver edged down to $16.89/16.95 an ounce from $17.00/17.05 late in New York.
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