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PRECIOUS-Platinum snaps 4-day losing streak, palladium extends gains

Published 2015-09-23, 09:03 p/m
© Reuters.  PRECIOUS-Platinum snaps 4-day losing streak, palladium extends gains
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SINGAPORE, Sept 24 (Reuters) - Platinum rose on Thursday,
snapping a four-day rout that took it to its lowest in 6-1/2
years on fears 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 extended gains to a second session, jumping to its
highest since mid-July.

FUNDAMENTALS
* Spot platinum XPT= had risen 1.8 percent to $946.45 an
ounce by 0048 GMT, after losing about 5 percent in the past four
sessions.
* Investors believed news of Volkswagen AG 's VOWG_p.DE
falsification of U.S. vehicle emission tests could affect demand
for diesel cars. Platinum is used in diesel catalysts to clean
up exhaust emissions.
* The world's biggest carmaker by sales has 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
* The metal on Wednesday dropped to $924.50, its lowest
since January 2009, before recovering some lost ground.
* If regulators uncover widespread violations across the
industry and environmentally conscious drivers in Europe switch
to gasoline, it could "reshape the picture" for platinum, said
Erica Rannestad, senior analyst, precious metals demand at GFMS.
ID:nL1N11S21N
* Buying interest from Japanese traders after a three-day
holiday earlier this week could provide some support for
platinum on Thursday.
* Meanwhile, palladium, the predominant metal used in
gasoline catalysts, has benefited on speculation that the
Volkswagen scandal could increase demand for gasoline vehicles.
* Spot palladium XPD= gained about 2.5 percent on Thursday
to $662.20, its highest since July 14. It logged a near
7-percent jump in the previous session.
* Spot gold XAU= was firm at $1,130.75, after gaining 0.5
percent on Wednesday. Bullion saw some safe-haven bids as U.S.
and Asian stocks fell, dragged down by economic reports
portraying U.S. factory growth as tepid and China in its worst
manufacturing contraction since the global financial crisis.
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.60 tonnes to
676.40 tonnes on Wednesday. GOL/ETF
* For the top stories on metals and other news, click
TOP/MTL or GOL

MARKET NEWS
* The euro clung to broad gains early on Thursday, having
rallied after the head of the European Central Bank downplayed
the need for further monetary stimulus any time soon. USD/

DATA AHEAD (GMT)
0600 GMT Germany Gfk consumer Sentiment for Oct
1800 Germany IFo Business climate, expectations for Sep
1230 US Durable Goods for August
1230 US initial jobless claims
0200 US New Home Sales for August

PRICES AT 0048 GMT
Metal Last Change Pct chg

Spot gold 1130.75 0.75 0.07
Spot silver 14.79 0.03 0.2
Spot platinum 946.45 16.95 1.82
Spot palladium 653.97 8.47 1.31
Comex gold 1130.4 -1.1 -0.1
Comex silver 14.785 -0.004 -0.03
Euro 1.1181
DXY 96.209

COMEX gold and silver contracts show the
most active months

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