Platinum hit its lowest level since January on falling demand from automakers and as several commodities across the board fell, which dampened sentiment.

The precious metal was hit by worries about a slowdown in the car industry after U.S. car sales slipped to a 16-year low in July, led by a 27 percent drop at General Motors Corp. (nyse: GM – news – people )

'Further liquidation is not out of the question, we believe,' said HSBC (nyse: HBC – news – people ) analyst James Steel. 'That said, even if automotive demand for platinum remains sluggish, prices at $1,500/oz should be attractive to jewellery manufacturers. Renewed physical demand from the jewellery and non-automotive sectors may stabilize the platinum market.'

At 9:56 a.m., spot platinum fell to $1,539 from $1,562 per ounce Monday. Earlier, the metal hit $1,534 per ounce, its lowest price since January this year.

Elsewhere, a strong dollar pressured most commodities lower, with gold down after hitting a fresh six-week low, oil trading beneath $120 and copper down after losing 4 percent Monday.

The dollar was higher as investors also braced for the Federal Reserve's policy decision later in the day with the focus on the central bank's post-meeting statement for clues on the monetary policy outlook.

Gold was trading at $882.00 from $899.50 in late New York trading hours on Monday. Elsewhere, silver was down at $16.66 from $17.12 per ounce late Monday. while palladium eased to $341 from $354 per ounce. – Forbes