SINGAPORE, Sept 24 (Reuters) - Platinum rose on Thursday, snapping a four-day rout that took it to its lowest in 6-1/2 years on fears demand from the auto industry, where the metal is used in diesel catalysts, could take a hit following the Volkswagen (XETRA:VOWG) emissions scandal.
Palladium extended gains to a second session, jumping to its highest since mid-July.
FUNDAMENTALS
* Spot platinum XPT= had risen 1.8 percent to $946.45 an ounce by 0048 GMT, after losing about 5 percent in the past four sessions.
* Investors believed news of Volkswagen AG's VOWG_p.DE falsification of U.S. vehicle emission tests could affect demand for diesel cars. Platinum is used in diesel catalysts to clean up exhaust emissions.
* The world's biggest carmaker by sales has admitted to U.S. regulators that it programmed its cars to detect when they were being tested and alter the running of their diesel engines to conceal their true emissions. ID:nL5N11T2K4
* The metal on Wednesday dropped to $924.50, its lowest since January 2009, before recovering some lost ground.
* If regulators uncover widespread violations across the industry and environmentally conscious drivers in Europe switch to gasoline, it could "reshape the picture" for platinum, said Erica Rannestad, senior analyst, precious metals demand at GFMS. ID:nL1N11S21N
* Buying interest from Japanese traders after a three-day holiday earlier this week could provide some support for platinum on Thursday.
* Meanwhile, palladium, the predominant metal used in gasoline catalysts, has benefited on speculation that the Volkswagen scandal could increase demand for gasoline vehicles.
* Spot palladium XPD= gained about 2.5 percent on Thursday to $662.20, its highest since July 14. It logged a near 7-percent jump in the previous session.
* Spot gold XAU= was firm at $1,130.75, after gaining 0.5 percent on Wednesday. Bullion saw some safe-haven bids as U.S. and Asian stocks fell, dragged down by economic reports portraying U.S. factory growth as tepid and China in its worst manufacturing contraction since the global financial crisis.
* SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.60 tonnes to 676.40 tonnes on Wednesday. GOL/ETF
* For the top stories on metals and other news, click TOP/MTL or GOL
MARKET NEWS
* The euro clung to broad gains early on Thursday, having rallied after the head of the European Central Bank downplayed the need for further monetary stimulus any time soon. USD/
DATA AHEAD (GMT)
0600 GMT Germany Gfk consumer Sentiment for Oct
1800 Germany IFo Business climate, expectations for Sep
1230 US Durable Goods for August
1230 US initial jobless claims
0200 US New Home Sales for August
PRICES AT 0048 GMT Metal
Last
Change Pct chg
Spot gold
1130.75
0.75
0.07 Spot silver
14.79
0.03
0.2 Spot platinum
946.45
16.95
1.82 Spot palladium
653.97
8.47
1.31 Comex gold
1130.4
-1.1
-0.1 Comex silver
14.785 -0.004
-0.03 Euro
1.1181
DXY
96.209
COMEX gold and silver contracts show the most active months