AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)

imageLONDON: Platinum slid to a fresh 6-1/2-year low on Wednesday on fears about reduced demand from the auto sector, where it is used in diesel catalysts to clean up exhaust emissions.

The metal has been hurt by news of Volkswagen AG's falsification of US vehicle emission tests as investors believed it could affect demand for diesel cars. It fell to its lowest since January 2009 at $925.30 an ounce, and was down 0.6 percent at $930.50 by 1358 GMT.

"I guess the platinum is reacting to the immediate impact on the US market (lower diesel cars sales) and people anticipating that it may follow through in Europe, although it is difficult to work out what may happen," ICBC Standard Bank analyst Tom Kendall said.

Palladium, meanwhile, gained 5 percent to a 2-month high of $639.50. Gold firmed, following two days of losses, as the dollar fell 0.1 percent against a basket of leading currencies, while weak Chinese factory data soured investor appetite for risk.

Gold rose 0.6 percent to $1,131.16 an ounce, after losing 1.3 percent over the past two days on renewed expectations that the Federal Reserve will raise US interest rates for the first time in nearly a decade by the end of the year. "There is some typical risk-off trade in gold but it seems that investors are still very much reluctant to add safe-havens to the portfolios," Julius Baer analyst Carsten Menke said.

European shares rebounded from a lower start, although remaining volatile due to a fall in Asian stocks after a private survey showed activity in China's factory sector unexpectedly shrank to a 6-1/2-year low in September.

Gold's outlook, however, continues to be clouded by a looming US interest rate hike. The Fed stood pat on interest rates last week but the US central bank has also said it would move to increase rates later this year.

Atlanta Fed President Dennis Lockhart said on Monday that last week's decision was largely a "risk management" exercise, and he still expects an increase this year. St. Louis Fed President James Bullard said the central bank could lift rates at its October meeting.

Higher rates would dent demand for non-interest-paying gold, while boosting the dollar.

Inflows into SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, supported prices on Wednesday. The fund's holdings rose 0.18 percent to 675.80 tonnes on Tuesday, the first inflow in almost a month.

Silver rose 0.9 percent to $14.85 an ounce.

Copyright Reuters, 2015

Comments

Comments are closed.