Gold, copper, platinum at 1-week low, oil off 2-yr high on worries China may raise rates

Commodities dropped on Friday as higher-than-expected Chinese inflation triggered rate hike worries in the world's second largest economy pushing gold, copper and platinum to 1-week lows and cutting December crude by more than $2 on the day.

Government data showed on Thursday that China's consumer prices rose 4.4 percent in October, beating street expectations of 4 percent.

At 0910 GMT, light sweet crude for December delivery was at $85.57 per barrel on Comex, down $2.24 from its previous close and falling off a 2-year high above $88 hit on Thursday. December gold was at $1384.4 an ounce and silver at $26.855 per ounce. Silver fell as low as $26.55 on Friday, where it is testing key support, as an IB Times technical analysis based on Fibonacci projected on Thursday.

Platinum for January fell to $1698 an ounce, down 3.5 percent from a high of $1760 hit earlier this week. Palladium for December delivery dropped to $677.60 from $704.15 at its previous close.

Copper, the most actively traded base metal, fell below $4 mark to near 1-week low on Friday. The metal for December delivery was at $3.932 per pound on Comex, down 2.5 percent from its previous close of $4.0225 and 3.19 percent weaker than a record high of $4.05 hit on Thursday.