Platinum, palladium plunge

More than half of all platinum consumption is for emissions-control components for car and truck engines. US auto sales fell to the lowest annual pace in 15 years last month, raising concerns purchases of the metal for industrial use will decline. Earlier today, palladium futures in Tokyo fell by the exchange-imposed daily limit on signs of lower demand.

Platinum futures for October delivery plunged $56.10, or 3.1 per cent, to $1,752.10 an ounce at 9:59 am on the New York Mercantile Exchange. The price dropped 9.4 per cent last week, the biggest such decline since March. Most-active futures sank for an eighth consecutive session on Wednesday, the longest losing streak since an eight-session slide that ended July 9, 2002.

Most-active platinum futures still have gained 19 per cent this year before today, after a 33 per cent rise in 2007.