Metal prices surge on European bailout plan

Some metal prices, like copper, were up as much as 6 percent. The rally happened after European officials announced they had crafted the broad outlines of a plan to shore up banks and indebted nations there.Traders have been anticipating news of a possible deal after European officials met Wednesday. News of the package was released early Thursday. The full programme is expected to be finalized by early December.The news also drove gold and silver prices higher because traders think the European bailout could create inflation. The plan calls for more money to be pumped into European banks and heavily indebted countries, which could lower currency values. Investors buy precious metals to protect against inflation.Gold for December delivery rose $24.20, or 1.4 percent, to settle at $1,747.70 an ounce Thursday. December silver was up $1.802, or 5.4 percent, to close at $35.112.Industrial metals like copper and palladium rose because traders think the bailout could help contain Europes financial woes. That would boost economic growth, and increase demand for raw materials. Industrial metals prices also rose because of news that the U.S. economy expanded at an annual rate of 2.5 percent in the July-September quarter, the strongest growth in a year.Copper for December delivery gained 20.2 cents, or nearly 6 percent, to settle at $3.692 a pound. December palladium jumped $23.85, or almost 4 percent, to $669.90 an ounce. January platinum gained $44.20 to finish at $1,641.40 an ounce.