By Halia Pavliva Oct. 29 (Bloomberg) -- Platinum gained and palladium jumped the most in eight months in New York as equities rallied worldwide, helping to boost demand for precious metals. Stock indexes in Europe and Asia soared as lending rates declined. Gold and silver also climbed. Platinum and palladium, used in emissions-control parts for car and truck engines, also gained on speculation that the U.S. may rescue automakers, said Jon Nadler, a senior analyst at Kitco Inc. in Montreal. ``The generally brighter stock market mood and the ongoing talks to bail out the automakers definitely gave platinum-group buyers reason to express a bit more confidence than had been the case until now,'' Nadler said. Platinum futures for January delivery jumped $15.10, or 1.9 percent, to $823.90 an ounce at 10:41 a.m. on the New York Mercantile Exchange. A close at that price would be the biggest one-day gain since Oct. 14. The price dropped 21 percent this month before today and was down 65 percent from a record $2,308.80 in March. ``The main factors driving the commodity market at the moment are: deleveraging, disinvestment and the U.S. dollar,'' John Reade, the head of metals strategy at UBS AG in London, said today in a note to clients. ``Pressure on commodities from financial flows will continue in the next few months. Sharp bounces are very possible.'' Palladium Palladium futures for December delivery climbed $17.25, or 9.4 percent, to $201 an ounce. A close at that price would be the biggest one-day advance since Feb. 19. The price fell 9.3 percent this month before today. Platinum tumbled 47 percent this year before today, and palladium is down 51 percent. Carmakers account for more than 60 percent of global platinum use, according to metals trader Johnson Matthey Plc in London. General Motors Corp. Chief Executive Officer Rick Wagoner personally led a lobbying push for federal aid this week as the biggest U.S. automaker seeks to combine with Chrysler LLC, people close to the discussions said yesterday. The dollar fell for a second day against the euro on bets the Federal Reserve will lower interest rates more than economists predict. The benchmark rate will be cut by half a percentage point today, to 1 percent, according to the median forecast of 70 economists surveyed by Bloomberg News between Oct. 7 and yesterday. Some investors buy precious metals, including platinum and palladium, to preserve value when the dollar weakens. To contact the reporter on this story: Halia Pavliva in New York at hpavliva@bloomberg.net.

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