Investing.com - Platinum futures fell to the lowest level since January 2009 on Tuesday, as fears that the Volkswagen (XETRA:VOWG) emissions scandal would reduce demand from the auto sector continued to hit prices.
Platinum for January delivery on the Comex division of the New York Mercantile Exchange sank to an intraday low of $899.60 an ounce, a level not seen in more than six years, before paring losses to trade at $913.45 during U.S. morning hours, down $9.05, or 0.98%.
A day earlier, platinum tumbled $28.80, or 3.03%. Prices of the metal have been under heavy selling pressure in recent sessions as the Volkswagen (XETRA:VOWG_p) diesel emissions scandal sparked fears over a slowdown in demand.
Diesel engines are largely produced with platinum.
Elsewhere, gold for December delivery on the Comex division of the New York Mercantile Exchange inched down $5.40, or 0.48%, to trade at $1,126.30 a troy ounce.
On Monday, gold retreated $13.90, or 1.21%, after New York Federal Reserve Bank President William Dudley said that the Fed remains on track for a rate hike this year and could move as soon as the upcoming meeting in October.
The comments came after Fed Chair Janet Yellen said last Thursday that the U.S. central bank was likely to raise interest rates in 2015.
Most economists believe the Fed will begin raising rates in December after holding policy steady earlier this month due to concerns over the global economy, particularly China.
The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.
Meanwhile, copper for December delivery on the Comex division of the New York Mercantile Exchange inched up 0.6 cents, or 0.29%, to trade at $2.258 a pound during afternoon hours in London.
Copper tumbled 3.2 cents, or 1.4%, on Monday, after data showed profits earned by Chinese industrial companies in August fell 8.8% from a year earlier.
Copper prices have been under heavy selling pressure in recent weeks as fears of a China-led global economic slowdown spooked traders and rattled sentiment.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.