SINGAPORE, Sept 30 (Reuters) - Platinum slid for an eighth
session out of nine on Wednesday to trade near its lowest since
December 2008, and was headed for its biggest quarterly slump in
seven years on fears of a demand fallout from the Volkswagen (XETRA:VOWG)
emissions scandal.
Gold steadied after a three-day losing streak but was headed
for its worst quarter in a year on a looming U.S. rate hike.
FUNDAMENTALS
* Spot platinum XPT= eased 0.3 percent to $911 an ounce by
0051 GMT, not far from a 6-1/2-year low of $894 reached in the
previous session.
* The metal's 15 percent loss this quarter is its fifth
straight quarterly drop and its worst three-month period since
the third quarter of 2008. It is down 9 percent for the month,
its biggest monthly drop since May 2012.
* Platinum has been hit after revelations that Volkswagen AG
VOWG_p.DE falsified U.S. vehicle emission tests, which some
believe could affect demand for diesel cars. Platinum is widely
used in auto catalysts, particularly for diesel engines.
* Even before the Volkswagen scandal broke last week, the
market had been suffering from an increase in supplies following
the end of last year's five-month strike among platinum miners
in major producer South Africa, and a weakness in Chinese
jewellery demand.
* Palladium XPD= on the other hand has gained as investors
believe demand for gasoline cars could increase. With a 9
percent jump, the metal was poised to log its best month since
July 2013, though it was still headed for a quarterly loss.
* Spot gold was little changed at $1,126.60. It was
headed for its worst quarter in a year, with a drop of nearly 4
percent.
* Gold has been hurt by expectations that the Federal
Reserve would raise U.S. rates this year for the first time in
nearly a decade, a move that could dent demand for
non-interest-paying bullion.
* Traders will be eyeing a speech by Fed Chair Janet Yellen
later on Wednesday.
* The metal has failed to get a boost from safe-haven bids
following a decline in global equities. Asian stocks slid to
three-year lows on Tuesday due to a weak outlook for commodities
and persistent concerns about China's economy.
MARKET NEWS
* Demand for the safe-haven yen eased early on Wednesday as
global stocks steadied from a rout and some semblance of calm
returned to markets, but traders said month-end and quarter-end
flows meant that volatility is likely to remain a feature.
PRICES AT 0051 GMT
Metal Last Change Pct chg
Spot gold 1126.6 -0.46 -0.04
Spot silver 14.6 -0.01 -0.07
Spot platinum 911 -2.75 -0.3
Spot palladium 654.72 0.72 0.11
Comex gold 1126.4 -0.4 -0.04
Comex silver 14.585 0.012 0.08
Euro 1.1255
DXY 95.907
COMEX gold and silver contracts show the
most active months