Platinum spurted above $1,600 an ounce on Thursday before dropping back as the impact of a one-day strike in main producer South Africa subsided and worries about falling demand for autocatalysts resurfaced.
A drop in quarterly earnings of Toyota Motor Corp, the world's biggest automaker, reflected the slowing US economy and poor car sales which have dragged down platinum prices from record high above $2,000 an ounce in March. Autocatalysts account for more than 60 percent of global platinum use.
Spot platinum fell to $1,592.50/1,612.50 an ounce from $1,594.50/1,614.50 late in New York on Wednesday, when it rallied 2 percent after a national strike in main producer South Africa forced mines and factories to shut.
Follow-through buying lifted platinum to a high of $1,603 on Thursday but it struggled to hold the gains. Platinum hit a six-month low of $1,517 this week after poor results of car companies threatened to cut demand.
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