Aug. 21 (Bloomberg) -- Platinum fell in Asia, heading for a second weekly decline, on concern the closing of the U.S. “cash for clunkers” vehicle trade-in program will dim demand for the metal used mainly in catalytic converters. The U.S. clunkers plan, which offers buyers discounts of as much as $4,500 to trade in older cars and trucks for new, more fuel-efficient vehicles, will close on Aug. 24, Transportation Secretary Ray LaHood said yesterday. It has recorded more than 457,000 transactions worth $1.9 billion in rebates. “The program has been helping car sales and without this subsidy, we may see fewer cars being sold and platinum consumption sliding again,” Liu Biyuan, analyst at GF Futures Co., said from Guangzhou today. Platinum for immediate delivery fell as much as 1.3 percent to $1,226.25 an ounce and last traded at $1,230.50 an ounce at 11:23 a.m. Singapore time, down 2.2 percent this week. Palladium lost 1.1 percent to $271.75 an ounce, heading for a first weekly drop in six weeks. About half of platinum and palladium use is for auto parts, according to Johnson Matthey Plc, a London-based researcher and metal refiner. Gold for immediate delivery was little changed at $940.98 an ounce, down 0.8 percent this week, as investors awaited direction from the dollar. Silver fell 0.3 percent to $13.885 an ounce, down 5.7 percent for the week, the largest weekly decline since the week ended Feb. 27. “Gold prices are hovering around the $940 mark as the U.S. dollar traded sideways,” analysts at Credit Suisse Group said in a note today. “The market is likely to take direction from external factors such as the U.S. dollar in the coming days.” Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, stood at 1,065.49 metric tons as of yesterday, unchanged since Aug. 11, according to figures on the company’s Web site. This is the lowest level since March 13 and the longest unchanged period since June 5 to June 19.

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