By Halia Pavliva Dec. 16 (Bloomberg) -- Platinum and palladium rose after a report showed the cost of living in the U.S. accelerated last month, boosting demand for precious metals as a store of value. The 0.4 percent increase in the U.S. consumer-price index followed a 0.3 percent gain in October, figures from the Labor Department showed today in Washington. Most platinum and palladium is used in automotive emission-control parts and jewelry. Some investors buy the metals as a store of value against accelerating inflation. “A combination of positive economic data from the U.S. and a slightly higher CPI reading has platinum bulls pushing higher,” said Ralph Preston, a Heritage West Futures Inc. analyst in San Diego. Platinum futures for January delivery rose $9.70, or 0.7 percent, to $1,462.20 an ounce at 10:50 a.m. on the New York Mercantile Exchange. Before today, the most-active contract advanced 54 percent this year. “Look for an acceleration in price action to the upside on a close above $1,465” in platinum, Preston said. Palladium futures for March delivery rose $10.45, or 2.9 percent, to $376.50 an ounce in New York. Before today, the metal surged 94 percent in 2009. In another sign of economic recovery, builders broke ground on more U.S. homes in November, the Commerce Department reported today in Washington. The gain, coupled with a rise in building permits to the highest number in a year, indicates the recovery in residential construction may extend into 2010. Housing starts rose 8.9 percent from October to an annual rate of 574,000 homes, the government reported. Building permits climbed 6 percent to 584,000 units. To contact the reporter on this story: Halia Pavliva in New York at hpavliva@bloomberg.net.

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