Oil, other commodities rise following budget deal

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Associated Press

Posted on January 2, 2013 at 6:00 PM

Updated Wednesday, Jan 2 at 6:02 PM

Prices for crude oil and most other commodities are rising after lawmakers cobbled together a last-minute budget agreement in Washington.

Most energy products were higher Wednesday.

Commodities followed the stock market up after Congress passed a budget plan that would avert sweeping tax increases and cuts to government spending. That set off a rally in stocks and encouraged investors to shift money into other higher-risk assets like commodities. The Dow Jones industrial average jumped 308 points, its biggest gain since December 2011.

Precious metals also rose broadly.

Gold gained $13 to $1,688.80 an ounce, an increase of nearly 1 percent. Silver rose even more, jumping 78 cents to $31.007 an ounce, a rise of 2.6 percent.

Grain and bean prices mostly fell.

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