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To: LoneClone who wrote (36590)	5/5/2009 7:03:02 PM
From: LoneClone	Read Replies (1) \| Respond to of 195434

Platinum, Palladium Rise on Speculation Demand in China to Gain bloomberg.com By Halia Pavliva May 4 (Bloomberg) -- Platinum prices jumped the most in three weeks on speculation that demand for the metal will climb in China as the economy shows signs of a rebound. Palladium also gained. In April, China’s manufacturing expanded after declines in export orders moderated and investment surged because of the government’s $586 billion stimulus package, data showed today. This year, platinum has gained 19 percent, and palladium is up 18 percent. “China’s manufacturing expanded for the first time in nine months, adding a few more green shoots to the global economic recovery sapling,” Jon Nadler, a senior analyst at Kitco Inc. in Montreal, said in a report. Platinum futures for July delivery gained $25.60, or 2.3 percent, to $1,122 an ounce on the New York Mercantile Exchange, the biggest gain for a most-active contract since April 13. Palladium futures for June delivery advanced $8.40, or 3.9 percent, to $222.30 an ounce. Platinum and palladium are used mostly in pollution-control devices for cars. Demand in the U.S. is slumping as auto sales plunge. General Motors Corp., the biggest U.S. carmaker, is cutting dealerships, and Chrysler LLC, the third-largest, has filed for bankruptcy. “Automotive-sector talk continues to include the ‘B’ word for GM,” Nadler said. ‘Considerable Pressure’ The U.S. auto market, the world’s largest, contracted for the 18th consecutive month in April. GM has said it will shut U.S. car plants for as long as a few months later this year. “With the U.S. auto industry under considerable pressure, we would not be surprised by one or both of the Detroit behemoths following Chrysler into Chapter 11, and their greater size will probably mean a greater impact on the platinum market,” John Reade, the head metals strategist at UBS AG in London, said in a report. Last week, platinum tumbled 7.4 percent, the most since December, and palladium plunged 9.2 percent. The metals gained today as the dollar dropped, enhancing the appeal of commodities as an alternative investment. The dollar fell as much as 1 percent against a basket of six major currencies. The Reuters/Jefferies CRB Index of 19 raw materials rose for the fourth session in a row. “Platinum prices are finding support on an increase in risk appetite,” said Ralph Preston, a commodity analyst at Heritage West Futures Inc. To contact the reporter on this story: Halia Pavliva in New York at hpavliva@bloomberg.net. Last Updated: May 4, 2009 14:18 EDT