NEW YORK, USA – Gold and silver prices rose sharply yesterday on concerns about US economic growth and the European financial crisis.

Gold for December delivery jumped US$48.10 yesterday, or 2.9 per cent, to settle at US$1,700.40 an ounce. December silver was up 1.408 cents, or 4.5 per cent, to close at US$33.052.

The rally puts gold four per cent higher for the week, silver six per cent higher.

Precious metals often rise when traders are worried about economic stagnation or financial turmoil. Both of those concerns were stoked yesterday.

Stocks slumped on disappointing earnings from industrial conglomerate 3M, Netflix Inc and Delta Air Lines Inc. Also, European finance ministers cancelled a meeting to hammer out a rescue package for banks and indebted nations there.

Many traders were expecting that European officials would unveil a broad financial rescue plan today to shore up the region’s banks and heavily indebted nations like Greece. Doubts are growing that a plan will be ready in time.

In other trading, December palladium rose US$13.60, or two per cent, to US$652.10 an ounce. January platinum gained US$26.80 to finish at US$1,568.80 an ounce.

Copper prices fell. Following a strong rally Monday, copper is still up six per cent for the week. Copper for December delivery lost 2.85 cents, or nearly one per cent, to settle at US$3.4205 a pound.

Crop prices fell. December wheat fell 6.25 cents to finish at US$6.3625 per bushel. December corn lost 0.25 cents to end at US$6.5075 per bushel. November soybeans dropped 1.25 cents, or one per cent, to finish at US$12.255 a bushel.

Oil prices rose. Benchmark oil rose US$1.90 to US$93.17 per barrel on the New York Mercantile Exchange.

Heating oil fell 0.3 cents to finish at US$3.0512 per gallon, gasoline futures rose 0.44 cents to close at US$2.6747 per gallon and natural gas gained 5.4 cents to close at US$3.658 per 1,000 cubic feet.

AP