By Halia Pavliva July 17 (Bloomberg) -- Platinum rose on speculation that a stabilizing global economy will increase demand for the metal from jewelry producers and automakers. Palladium fell. Housing starts in the U.S. rose in June as construction of single-family homes jumped by the most since 2004, adding to signs that the economy is stabilizing. Ford Motor Co. has estimated U.S. auto sales will reach 10.2 million this year, up from a 9.7 million rate in June. Carmakers account for about 60 percent of platinum and palladium demand. “Expectations for a pickup in the auto sector coupled with the sharp increase in jewelry demand and robust investment demand is likely to tighten the market,” Suki Cooper, a Barclays Capital analyst in London, said in a report. Labor disputes may also boost prices by limiting supplies, she said. Platinum futures for October delivery rose $6.80, or 0.6 percent, to $1,176.10 an ounce on the New York Mercantile Exchange, marking a 6.2 percent increase from last week, halting five straight declines. Palladium futures for September delivery fell 65 cents, or 0.3 percent, to $249.60 an ounce, gaining 6.2 percent for the week. Platinum jumped to a record $2,308.80 an ounce in March 2008 as blackouts at mines in South Africa, the world’s largest supplier, limited output. The National Union of Mineworkers in South Africa has begun contract talks with Anglo Platinum Ltd., the world’s biggest producer of the metal. Impala Platinum Holdings Ltd., the second-largest supplier, increased a pay offer today to head off a threatened strike by the union. To contact the reporters on this story: Halia Pavliva in New York at hpavliva@bloomberg.net; Claudia Carpenter in London at ccarpenter2@bloomberg.net

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