SINGAPORE, Sept 30 (Reuters) - Platinum slid for an eighth session out of nine on Wednesday to trade near its lowest since December 2008, and was headed for its biggest quarterly slump in seven years on fears of a demand fallout from the Volkswagen (XETRA:VOWG) emissions scandal.
Gold steadied after a three-day losing streak but was headed for its worst quarter in a year on a looming U.S. rate hike.
FUNDAMENTALS
* Spot platinum XPT= eased 0.3 percent to $911 an ounce by 0051 GMT, not far from a 6-1/2-year low of $894 reached in the previous session.
* The metal's 15 percent loss this quarter is its fifth straight quarterly drop and its worst three-month period since the third quarter of 2008. It is down 9 percent for the month, its biggest monthly drop since May 2012.
* Platinum has been hit after revelations that Volkswagen AG VOWG_p.DE falsified U.S. vehicle emission tests, which some believe could affect demand for diesel cars. Platinum is widely used in auto catalysts, particularly for diesel engines.
* Even before the Volkswagen scandal broke last week, the market had been suffering from an increase in supplies following the end of last year's five-month strike among platinum miners in major producer South Africa, and a weakness in Chinese jewellery demand.
* Palladium XPD= on the other hand has gained as investors believe demand for gasoline cars could increase. With a 9 percent jump, the metal was poised to log its best month since July 2013, though it was still headed for a quarterly loss.
* Spot gold was little changed at $1,126.60. It was headed for its worst quarter in a year, with a drop of nearly 4 percent.
* Gold has been hurt by expectations that the Federal Reserve would raise U.S. rates this year for the first time in nearly a decade, a move that could dent demand for non-interest-paying bullion.
* Traders will be eyeing a speech by Fed Chair Janet Yellen later on Wednesday.
* The metal has failed to get a boost from safe-haven bids following a decline in global equities. Asian stocks slid to three-year lows on Tuesday due to a weak outlook for commodities and persistent concerns about China's economy.
MARKET NEWS
* Demand for the safe-haven yen eased early on Wednesday as global stocks steadied from a rout and some semblance of calm returned to markets, but traders said month-end and quarter-end flows meant that volatility is likely to remain a feature.
PRICES AT 0051 GMT Metal
Last
Change Pct chg
Spot gold
1126.6
-0.46
-0.04 Spot silver
14.6
-0.01
-0.07 Spot platinum
911
-2.75
-0.3 Spot palladium
654.72
0.72
0.11 Comex gold
1126.4
-0.4
-0.04 Comex silver
14.585
0.012
0.08 Euro
1.1255
DXY
95.907
COMEX gold and silver contracts show the most active months