By Halia Pavliva Dec. 11 (Bloomberg) -- Platinum prices climbed to the highest in more than a week as the dollar dropped, boosting demand for the metal as an alternative investment. Palladium fell. The dollar headed for the biggest weekly drop in 23 years against a basket of six major currencies as the cost of borrowing in the U.S. currency tumbled. In the week, platinum has climbed 7.4 percent, and the Reuters/Jefferies CRB Index of 19 raw materials was poised for the largest surge since the gauge debuted in 1956. Gold and silver also climbed today. “Precious metals continue to move higher on weaker dollar trading,” Miguel Perez-Santalla, a sales vice president at Heraeus Precious Metals Management in New York, said in a report. Platinum futures for January delivery rose $5.50, or 0.7 percent, to $845.50 an ounce on the New York Mercantile Exchange. Earlier, the price reached $854, the highest for a most-active contract since Dec. 1. The metal, used in jewelry and pollution-control devices in cars, still has tumbled 45 percent this year on slumping auto sales. The U.S. House of Representatives voted 237-170 last night to approve emergency loans for General Motors Corp. and Chrysler LLC. Republican opposition in the Senate threatens to delay or kill the legislation. “The House’s passage of the automaker rescue plan ignited risk appetite with a vengeance and sent the dollar reeling and commodities surging,” Jon Nadler, a senior analyst at Kitco Inc. in Montreal, said in a report. Automakers account for more than 60 percent of global platinum use, according to estimates by Johnson Matthey Plc. The Bush administration’s $14 billion automaker bailout plan and other alternatives lack the votes to pass the Senate. Palladium futures for March delivery fell $1.55, or 0.8 percent, to $184.20 an ounce, snapping a three-day rally. The price has plunged 51 percent this year. To contact the reporter on this story: Halia Pavliva in New York at hpavliva@bloomberg.net.

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