Industrial metals rise on Europe outlook

AP News
Posted: Oct 10, 2011 3:44 PM
Industrial metals rise on Europe outlook

Industrial metals rose Monday on optimism that Europe is making progress toward containing its debt crisis.

The leaders of Germany and France agreed over the weekend to finalize an overall response to the region's debt crisis by the end of the month. That helped ease worries that a freeze-up of Europe's financial system could trigger a global economic slowdown and decrease demand for basic materials.

Industrial metals like copper and palladium are used in a variety of manufactured goods including cars and cell phones. The price of those metals often tracks with investors' outlook for economic growth. Markets rallied Monday, with the Dow Jones industrial average up more than 2 percent in afternoon trading as commodity prices settled for the day.

Copper for December delivery gained 94.5 cents, or 2.9 percent, to end at $3.3680 a pound. January platinum jumped $31.80, or 2.1 percent, to finish at $1,525.10 an ounce and December palladium rose $28.45, or 4.9 percent, to $614.30 an ounce.

Precious metals also rose. Gold for December delivery rose $35, or 2 percent, to $1,670.80 an ounce. December silver gained 98.7 cents, or 3.2 percent, to close at $31.980.

Oil prices rose. Benchmark oil gained $2.43 to end at $85.41 per barrel on the New York Mercantile Exchange.

Heating oil rose 4.51 cents to finish at $2.9039 per gallon, gasoline futures rose 4.77 cents to $2.6953 per gallon and natural gas rose 6 cents to $3.541 per 1,000 cubic feet.

December wheat gained 4 cents to finish at $6.1150 per bushel, December corn gained 5 cents to end at $6.05 per bushel and November soybeans rose 19.25 cents to close at $11.775 per bushel.