* Platinum up after 4-day losing streak
* Japan back from holiday, helps support prices
* Palladium at highest since mid-July
(Updates prices)
By A. Ananthalakshmi
SINGAPORE, Sept 24 (Reuters) - Platinum recovered some lost
ground on Thursday on bargain-hunting after a four-day rout
prompted by fears that demand from the auto industry, where the
metal is used in diesel catalysts, could take a hit following
the Volkswagen (XETRA:VOWG) emissions scandal.
Palladium, the predominant metal used in gasoline catalysts,
extended gains to a second session, jumping to its highest
since mid-July.
Volkswagen AG VOWG_p.DE , the world's biggest carmaker by
sales, admitted to U.S. regulators that it programmed its cars
to detect when they were being tested and alter the running of
their diesel engines to conceal their true
emissions. ID:nL5N11T2K4
Platinum is used in diesel catalysts to clean up exhaust
emissions.
The driving factor for the metals "is a worry that consumers
will swing more in favour of gasoline vehicles, which have
palladium heavy autocatalyst loadings with little or no
platinum, and away from diesel vehicles, which require heavier
platinum loadings in their autocatalysts," said HSBC analyst
James Steel.
Spot platinum XPT= had risen 1.4 percent to $942.24 an
ounce by 0635 GMT, after losing about 5 percent in the past four
sessions. The metal on Wednesday dropped to $924.50, its lowest
since January 2009.
Platinum got support on Thursday from Japanese traders
returning from a three-day holiday.
"The Japanese came in aggressively on the bid this morning,
taking the white metal more than $20 higher," said MKS Group
trader Jason Cerisola.
Spot palladium XPD= climbed to $662.20, its highest since
July 14, before paring some gains to trade at $649.80. It logged
a near 7-percent jump in the previous session.
Gold XAU= also climbed for a second straight session,
gaining 0.4 percent to $1,134.56, as Asian shares were subdued
after a bruising selloff the previous day. MKTS/GLOB
Worries that an eventual tightening in U.S. monetary policy
and slower growth in China could knock the global economy have
scared investors, prompting some safe-haven bids for gold.
Holdings in SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose for a second straight
session, providing some support for prices. The fund added 0.60
tonnes on Wednesday, bringing total holdings to 676.40 tonnes.
GOL/ETF
Investors will be closely monitoring a speech by Federal
Reserve Chair Janet Yellen later in the session for clues on
when the U.S. central bank will begin to raise rates.
PRICES AT 0635 GMT
Metal Last Change Pct chg
Spot gold 1134.56 4.56 0.4
Spot silver 14.78 0.02 0.14
Spot platinum 942.24 12.74 1.37
Spot palladium 649.8 4.3 0.67
Comex gold 1134 2.5 0.22
Comex silver 14.805 0.016 0.11
Euro 1.1207
DXY 96.025
COMEX gold and silver contracts show the
most active months