Commodity prices were mixed this week, heading towards the end of 2012, a year in which the values of raw materials such as oil and gold were determined largely by global economic strains and recovery hopes. Oil prices rose in limited trading amid both the festive season and a stalemate in talks to avert the “fiscal cliff” of US tax hikes and spending cuts. Traders are concerned by political bickering in Washington over a new budget due to take affect on January 1. In recent weeks, Democratic and Republican leaders have rejected offers from the other side and broke for the Christmas holiday blaming each other for failing to find a deal. On Friday, markets were waiting for an 11th-hour meeting between US President Barack Obama and congressional leaders over a deal to avert a potentially catastrophic situation. Traders welcomed news of Obama’s meeting, which was to take place after the president cut short his Christmas vacation in Hawaii. “They are trying to at least come up with something before the year comes to an end, so Obama shortening his holiday and coming back… I think that is a plus point,” IG trading group analyst Yang Weiming told.
