Platinum prices moved off an earlier 15-month peak on Tuesday in Europe, while gold stagnated near four-week peaks in subdued trade, dealers said. Platinum, used mainly in jewellery and autocatalysts to clean exhaust fumes, fell back below $900 an ounce following a pause in speculative buying, having earlier hit $909 - its firmest since April 21, 2004.
Traders earlier said they were seeing no interest from industrial consumers, adding the recent move was fuelled by speculators.
By 1430 GMT spot platinum was at $899.50/905.50 a troy ounce, down from New York's $904.00/910.00.
John Reade of UBS Investment Bank thought platinum's rally would be brief. "We doubt that platinum will remain above $900/oz for long and suspect that metal will soon return to its $860-880 an ounce trading range."
Analysts attributed the renewed speculative interest in part to the recent revaluation of the Chinese yuan, which could enhance demand in this key market.
"The market perception (is) that this should benefit the platinum market given the importance of the Chinese jewellery market and its price sensitivity," Alan Williamson, metals analyst with HSBC Bank, said in a daily report.
China accounted for nearly half of total purchases of platinum for jewellery manufacture in 2004, but its demand fell 12 percent due to high prices.
Spot prices hit their highest for 24 years in April 2004.
Supply is also an issue, with the recent firming in the rand to its highest in two months reducing the possibility of an immediate acceleration in South African output, Williamson said.
Labour disputes are also looming. Wage talks between the world's biggest platinum producer Angloplat and South Africa's biggest mining union reaching deadlock last week, prompting the union to call in mediators.
Workers at Implats, the second biggest producer, are also unhappy with the company's latest wage offer.
Gold was subdued at $431.40/432.20 a troy ounce, little changed from New York's $431.90/432.60.
News that a strike would be launched on Sunday by South Africa's National Union of Mineworkers (NUM) helped gold to reach a fresh four-week high of $433 an ounce.
However, analysts did not think the labour troubles would have a big impact on gold prices as there was hardly a shortage of the precious metal. "Given gold's massive inventory overhang (conservatively, 300 weeks of demand), supply disruptions would not have a direct positive impact on prices," Barclays Capital said in a report.
"However in a market that is looking for excuses to push higher, this will undoubtedly provide some near-term support."
Silver slipped to $7.22/7.25 an ounce from $7.26/7.29, while palladium was unchanged at $192.00/195.00.