By SANDY SHORE
Most commodity prices rose Thursday as back-and-forth negotiations continued over the U.S. budget.
Gold, industrial metals, oil and soybeans ended higher on the day. Natural gas, wheat and corn fell.
Investors hope the Obama administration and Congress can agree on a new budget by the end of the year, preventing automatic cuts to government spending and steep tax increases from going into effect.
Commodity prices have been uneven this week as investors have made trades based on the day's headlines about how the talks are progressing. Economists believe the lack of a budget agreement could push the U.S. back into a recession, which would cut demand for commodities such as industrial metals, oil and other energy products.
"This is a continuing seesaw of investor sentiment going into the final weeks of these fiscal cliff negotiations. Today, you have people feeling better again about the fiscal cliff and the economy going forward," Kingsview Financial analyst Matt Zeman said. "Now, again, how long this will last, who knows?"
Commodities also benefited from positive news about the U.S. economy. The Commerce Department said the economy grew at a faster rate than initially thought during the second quarter.
Separately, the National Association of Realtors said an index measuring pending contracts to buy homes jumped last month. Steady job gains and record-low mortgage rates have made home buying more attractive for Americans.
Gold for February delivery rose $10.70 to end at $1,729.50 per ounce. In March contracts, silver rose 66.1 cents, or 2 percent, to $34.431 per ounce, copper gained 6.8 cents to $3.6055 per pound and palladium ended up $12.25 at $687.45 per ounce. January platinum gained $7.80 to $1,619.50 an ounce.
Other commodities were mostly higher.
Benchmark oil rose $1.58, or 1.8 percent, to finish at $88.07 per barrel. Heating oil gained 3.26 cents to $3.0406 per gallon and wholesale gasoline rose 5.31 cents, or 1.9 percent, to $2.787 per gallon.