LONDON, Sept. 28--The price of platinum neared its all-time high point on Thursday, supported by the falling US dollar, solid demand and stretched supplies, analysts said.

The price reached 1,354.40 dollars an ounce on the London Platinum and Palladium Market, a level last seen in November 2006 when the precious metal had struck a record high 1,402.50 dollars, AFP reported.

Platinum is used by the jewelry industry and in the manufacture of catalytic exhaust units for autos. The price of platinum has jumped by almost 20 percent in value over the past twelve months.

UBS analyst John Reade said platinum was taking its cue from the plummeting US dollar. He added, “The main reason is, along with the other precious metals, the weaker dollar.“

Dollar-denominated commodities like platinum are boosted by the falling US unit because this makes them cheaper for foreign buyers using stronger currencies. On Thursday, the US dollar plunged as low as 1.4189 against the euro amid jitters over the American economy.

Platinum has also been dragged higher by gold--which hit the highest level for 27 years last week. In addition, the platinum market faces tight supplies and keen global demand.

“There is good demand coming from the auto sector for auto catalysts,“ said Reade. He added, “There are concerns about supplies tightening up particularly in Zurich, where most of the physical trading takes place.“