Commodities benefit from hopeful economic signs

Print
Email
|

Associated Press

Posted on November 19, 2012 at 2:01 PM

Updated Monday, Nov 19 at 2:02 PM

Commodity prices are higher amid hints that there could be progress in U.S. budget negotiations and with Greece's debt problems.

Prices rose Monday across the board. Gold, oil, wheat, corn and sugar ended higher, while orange juice, cotton and natural gas fell.

Investors are encouraged after President Barack Obama and congressional leaders held talks Friday about ways to avoid tax increases and mandatory government spending cuts set to take effect Jan. 1. Without a compromise, some economists believe the U.S. could eventually drop into a recession.

Separately, the Greek government has presented emergency legislation aimed at landing its next bailout payment.

Commodities also are benefiting from a weaker dollar. Because commodities are priced in dollars, a weaker dollar makes them cheaper for traders who use other currencies.

Print
Email
|