Platinum jumped to an eight-month high on speculation demand for the metal mostly used in car parts will rise after last month’s U.S. auto sales were better than expected. Palladium futures fell. Auto sales in May slid to an annual rate of 9.9 million vehicles, down 34 percent from a year earlier, Autodata Corp. reported yesterday. That topped the 9.2 million average estimate of seven analysts in a Bloomberg News survey. More than half of the world’s platinum output is used in emission-control parts, according to Johnson Matthey Plc, a metal refiner and trader. “Auto sales numbers were better, and platinum remained firmer on what some claim are fundamental signals of a supply shortage, if consumption is back in the auto sector,” Miguel Perez-Santalla, a sales vice president at Heraeus Precious Metals Management in New York, said today in a note. Platinum futures for July delivery advanced $1.10, or 0.1 percent, to $1,244.50 an ounce on the New York Mercantile Exchange, gaining for the sixth straight session. Earlier, the price reached $1,260, the highest for a most-active contract since Sept. 23. The metal has risen 32 percent in 2009. “A one-time blip, as we have seen in the past, does not signal a turnaround,” Perez-Santalla said. “Until the economy turns around or we see confidence in stocks, we should remain at current levels.” A close above $1,252 will signal “a trending move towards” $1,390, said Ralph Preston, a Heritage West commodity analyst in San Diego. Palladium Palladium futures for September delivery fell $8.75, or 3.5 percent, to $242.60 an ounce, after earlier touching $254.90, the highest for a most-active contract since Sept. 24. The price has risen 29 percent this year. Palladium jumped the most in three weeks yesterday on speculation that General Motors Corp., the biggest U.S. carmaker, and rival Chrysler LLC, the third-largest, will emerge from bankruptcy better able to compete in world markets. Chrysler entered Chapter 11 reorganization on April 30, followed by GM on June 1. Ford Motor Co. is the second-largest U.S. automaker. May U.S. sales by GM, Ford and Chrysler fell less than analysts had estimated, while Toyota Motor Corp., the world’s biggest car company, and Honda Motor Co. fared worse than projected. Last month, the Conference Board’s consumer-sentiment index rose the most in six years, buoying the demand outlook. Johnson Matthey, the London-based metals trader that produces a third of all automotive emission-control parts, said on May 18 that it “had no clear prognosis for the balance of the platinum market in 2009.”

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