UPDATE 4-Platinum plunges 9 pct on car sales, gold falls

* Platinum drops to its lowest level since October 2006

* Gold slides nearly 2 pct on weak oil, strong dollar

* Markets await U.S. Federal Reserve decision (Recasts on platinum, adds ETFs, fresh comments, detail)

By Agnieszka Flak

LONDON, Sept 16 (Reuters) - Platinum slipped more than 9 percent on Tuesday to its lowest level since October 2006 as a weakening global economy hit demand from auto makers, with car sales dropping in Europe, China and the United States.

Platinum, mainly used in auto-catalysts, lost half of its value in the last six months from a record high of $2,290 an ounce in March as consumer confidence dipped and demand for cars weakened on the back of high fuel prices and weaker economies.

Spot platinum XPT= dropped to $1,055 an ounce, the lowest since October 2006, and was last quoted at $1,064/1,095 an ounce at 1420 GMT from Monday's $1,164.50.

"We continue to get absolutely dreadful news on car sales. said Stephen Briggs, commodity strategist at RBS Global Banking and Markets.

Demand for new cars in Europe fell by 7.3 percent in July and 15.6 percent in August compared with a year ago. Over the first eight months of the year, new car registrations in Europe fell by 3.9 percent. [ID:nLG456034]

Sales of passenger cars in China, the world's second-largest auto market, fell more than 6 percent in August.

"The idea of China making up the difference on slowdown elsewhere -- when you are talking about the automobile industry, that is plainly not true."

ACROSS-THE-BOARD SELLING

Gold fell nearly 2 percent alongside a sharp drop in oil as the dollar firmed ahead of a decision on interest rates by the U.S. Federal Reserve.

Although gold normally gains on safe-haven buying during financial crises, portfolio managers have been selling assets across the board after U.S. investment bank Lehman Brothers LEH.N filed for bankruptcy. [ID:nN13574113]

Spot gold XAU= was 0.7 percent lower at $781.40/782.50 an ounce from a session low of $771.55 from Monday's close of $786.20. Earlier it touched a one-week high of $786.95.