By Glenys Sim Jan. 19 (Bloomberg) -- Platinum climbed to a 17-month high on speculation investment and industrial demand will increase. Gold advanced as the dollar weakened. Palladium advanced for a fifth day to the highest since July 2008. The metal held in ETF Securities Ltd.’s exchange- traded commodities products rose 2.6 percent to a record 679,938 ounces on Jan. 15, according to the company’s Web site. Platinum and palladium are used mainly in catalytic converters that curb pollution from automobiles. “Assets are obviously being reallocated in favor of the newly issued platinum and palladium ETFs,” Commerzbank AG analysts led by Eugen Weinberg, said in a note. “They seem to establish themselves as a large demand component alongside the jewelry and car industry demand.” Platinum for immediate delivery rose as much as 1.3 percent to $1,643.75 an ounce, the highest price since August 2008, and traded at $1,641.63 at 1:54 p.m. in Singapore. Futures on the Comex division of the New York Mercantile Exchange jumped as much as 2.7 percent to $1,639.20 an ounce as the market reopened after a U.S. holiday yesterday. New York platinum futures closest to delivery are generally more expensive than contracts for later months, a condition known as backwardation. This signals low availability of short- term supply. Exchange Funds The ETFS Platinum Trust and ETFS Palladium Trust started trading on the NYSE Arca stock exchange on Jan. 8, data compiled by Bloomberg show. The funds are backed by physical metal, according to notices published on the Web site of ETF Securities Ltd. The platinum exchange-traded fund has bought 195,000 ounces in the past 10 days, more than 10 times daily global production, according to Commerzbank. Immediate-delivery palladium gained as much as 1 percent to $463.25 an ounce. Futures in New York added as much as 3.1 percent to $461.50, the highest price since July 7, 2008. “Support also comes from China, where up to 17.2 million vehicles are expected to be sold this year, a 26 percent increase from last year,” said Weinberg. China overtook the U.S. as the world’s largest auto market in 2009, ending more than a century of American dominance. The dollar declined for a second day against a basket of six currencies, helping boost demand for precious metals as alternative investments. Gold for immediate delivery rose for a second day, adding 0.3 percent to $1,136.40 an ounce, and silver climbed 0.5 percent to $18.73 an ounce by 2:03 p.m. in Singapore. To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net

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