By Halia Pavliva Dec. 8 (Bloomberg) -- Platinum rose in New York, rebounding from the biggest weekly drop in almost two months, as the dollar weakened, boosting the appeal of the precious metal as an alternative investment. Palladium also gained. The dollar weakened as much as 1.7 percent against a weighted basket of six major currencies including the euro and yen. Some precious metals, including gold, often move inversely to the dollar. Platinum, mostly used in auto parts and jewelry, has fallen 45 percent this year. Palladium is down 54 percent. “Many are starting to feel that there is a floor being formed here and the support of a weaker U.S. dollar has given it a little impetus,” Miguel Perez-Santalla, a sales vice president at Heraeus Precious Metals Management in New York, said today in a report. Platinum futures for January delivery rose $56.10, or 7.1 percent, to $843.30 an ounce on the New York Mercantile Exchange. The price dropped 11 percent last week, the fifth weekly decline of more than 10 percent since Aug. 1. Palladium futures for March delivery rose $12.50, or 7.7 percent, to $175.20 an ounce in New York. The metal touched $160.30 on Dec. 5, the lowest for a most-active contract since July 23, 2003. The price fell 16 percent last week. “With such weak demand overall from the global economic meltdown, it is expected not to explode too much higher,” Perez-Santalla said in his report. Auto sales in the U.S., the world’s biggest market, plunged 37 percent last month from November 2007, with cars and light trucks selling at the lowest annual rate in 26 years, industry reports showed last week. Automakers account for more than 60 percent of global platinum consumption, according to estimates by Johnson Matthey Plc, a London-based metals refiner, trader and researcher. Palladium, as well as platinum, is used to make catalytic converters for car and truck exhaust systems. To contact the reporter on this story: Halia Pavliva in New York at hpavliva@bloomberg.net.

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