LONDON, Dec 1: Gold prices also slipped, pressured by a marginally firmer dollar against the euro and a $2 slide in oil prices, which can dent interest in commodities as an asset class.

Platinum tumbled 7 per cent in Europe on Monday as weak Japanese auto sales data further emphasised poor demand from carmakers, while gold came under pressure from a firmer dollar and falling oil prices.

Spot platinum slipped to a session low of $808.50 an ounce, a one-week low, and was trading at $809.50/829.50 against $871.50 an ounce late on Friday. Its sister metal palladium fell nearly 5pc to $178/188 from $186.50.

Worries over falling car sales has already led platinum to slump some 65 percent since it hit an all-time high of $2,290 an ounce in March.

Weak Japanese car sales data on Monday spurred fresh selling. Sales fell 27.3 per cent in November from a year before, the Japan Automobile Dealers Association said on Monday.

Falling US car sales were largely priced into the market, but the same trend from elsewhere can push prices further down, traders said.

The market is now reacting to uncertainty about how the Chinese market will fare going forwards, said Tom Kendall, precious metals strategist at Mitsubishi Corporation.

Selling picked up momentum shortly after the European opening after a weak session in Asia. In addition to the poor demand outlook and a slightly firmer dollar, seasonal factors came into play, traders said.

A lot of people are exiting the market at this time of year, turning the metal back into cash, said Commerzbank trader Rory McVeigh.

Speculators and traders holding small balances want to generate cash for the year-end. The thinness of the market is exaggerating some moves, especially after a light Thursday and Friday because of Thanksgiving, he added.

Traders awaited US car sales data due on Tuesday to give fresh momentum to trade.

The dollar strengthened 0.4 per cent against the euro. The European Central Bank is widely expected to cut its interest rates later this week.Oil prices fell below $52 a barrel after Opec opted to defer a production cut until mid-December at its meeting on Saturday.

Spot gold was trading at $796.70/798.30 an ounce, down from $813.00 an ounce late on Friday, while spot silver was at $9.85/9.93 an ounce from $10.26 an ounce.—Reuters