Gold, oil, other commodities rise on Election Day

In this file photo taken with a long exposure, a pumping unit sucks oil from the ground near Greensburg, Kan. U.S. oil output is surging so fast that the United States could soon overtake Saudi Arabia as the world’s biggest producer. U.S. production of oil and other liquid hydrocarbons is on track to rise 7 percent in 2012 to an average of 10.9 million barrels per day. It’s the fourth straight year of crude increases, and this year drillers are on track to post the biggest single year gain since 1951. . AP Photo/Charlie Riedel, File

The price of gold surged Tuesday as U.S. voters cast ballots in the extremely close presidential election.

Gold for December delivery increased $31.80, or 2 percent, to finish at $1,715 per ounce, its second consecutive day of gains. Oil jumped 3.6 percent and other commodities ended mostly higher.

Many traders were waiting for the results of the hard-fought race between President Barack Obama and Republican Mitt Romney. Analysts say the outcome could determine the future course of the Federal Reserve’s economic stimulus measures, which have benefited commodities.

Once the election is settled, traders will shift their focus to a package of tax increases and spending cuts known as the “fiscal cliff” that will take effect unless Congress acts by Jan. 1. The European Central Bank also meets on Thursday.

A weaker dollar supported commodities prices. Since commodities are priced in dollars, a weaker dollar makes them cheaper for traders who use other currencies like the euro.

In December contracts, silver rose 90.6 cents, or 2.9 percent, to finish at $32.034 per ounce; copper rose 3.6 cents to $3.506 per ounce and palladium gained $17.15, or 2.8 percent, to $620.15 per ounce. January platinum ended up $15.60 at $1,558.30 per ounce.

Benchmark oil jumped $3.06, or 3.6 percent, to finish at $88.71 per barrel, heating oil increased 7 cents to $3.0529 per gallon, wholesale gasoline rose 7.87 cents, or 3 percent, to $2.6989 per gallon and natural gas gained 6.3 cents to $3.617 per 1,000 cubic feet.

In agricultural contracts, December wheat rose 11 cents to end at $8.77 per bushel, December corn increased 5.5 cents to $7.41 per bushel and January soybeans gained 12.25 cents to $15.155 per bushel.