July 30 (Bloomberg) -- Platinum and palladium fell in New York on speculation demand may weaken after Nissan Motor Co. developed a technology that uses less of the precious metals in emission-control devices.

The Tokyo-based company said July 27 that its new autocatalyst requires only half the platinum, palladium and rhodium of existing models. Makers of the devices buy 54 percent of the platinum sold each year, according to Helen Henton, head of commodity research at London-based Standard Chartered Plc.

``The market is still trying to evaluate the Nissan statement,'' said James Steel, an analyst at HSBC Securities in New York. ``That's the driving issue.''

Platinum futures for October delivery fell $8.20, or 0.6 percent, to $1,278.50 an ounce on the New York Mercantile Exchange at 9:15 a.m., the sixth consecutive drop.

Platinum fell 4.4 percent last week, the first such decline in four weeks. The metal reached a record $1,353.80 on May 7 and had climbed 12 percent this year before today.

Palladium for September delivery dropped $2.70, or 0.7 percent, to $361 an ounce. The metal fell 2.9 percent last week, ending three weeks of gains. Futures had climbed 7.4 percent this year before today.

To contact the reporter on this story: Halia Pavliva in New York at hpavliva@bloomberg.net.

Last Updated: July 30, 2007 09:34 EDT