| Platinum fell to a one-year low and palladium plunged to the lowest in almost three years on concerns that slumping auto sales will curtail demand for the metals.
Platinum and palladium are used in pollution-control devices for car and truck engines. Prices for the metals have plunged as U.S. auto sales have headed to a 15-year low. General Motors Corp. and Ford Motor Co. said last week that domestic sales fell at least 20 percent in August as demand for light trucks continued to plunge because of record gasoline prices.
''Platinum-group metals remain under pressure as the negative news on auto sales remains unrelentingly bad,'' John Reade, the head of metals strategy at UBS AG in London, said today in a report. ''It is hard to see the platinum-group metals regain ground barring a stabilization in the auto sector or a big bounce in the dollar.''
Platinum futures for October delivery fell $90.80, or 6.7 percent, to $1,262.10 an ounce on the New York Mercantile Exchange. The price earlier touched $1,244.10 an ounce, the lowest since Aug. 24, 2007. Most-active futures have dropped 10 percent in the past five sessions and are down 45 percent from a record $2,308.80 on March 4.
Palladium futures for December delivery fell $22.50, or 8.5 percent, to $243 an ounce, after reaching $239.95, the lowest since Nov. 10, 2005. The most-active contract tumbled 11 percent last week and is down 36 percent this year.
''Today we have a mixed bag,'' Miguel Perez-Santalla, a sales vice president at Heraeus Precious Metals Management in New York, said today in a note to clients. ''The constant flogging of this market is almost unbelievable.''
Outlook
Platinum may fall to $1,000 an ounce and palladium may touch $200 an ounce in the next two to three weeks, said Ralph Preston, an analyst at Heritage West Futures Inc. in San Diego.
''Based on the long-term charts, the $1,200 and $200 levels should be important supports for platinum and palladium,'' Jon Nadler, a senior analyst at Kitco Metals & Minerals Inc. in Montreal, said by e-mail. Industrial buyers may emerge if prices reach those points, Nadler said, adding that ''much still depends on the flight of funds from commodities, the looming global slowdown, and the health of the automotive sector.''
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