President Barack Obama said he and House Speaker John Boehner were "pretty close" to a deal. His comments came shortly after the White House threatened to veto Boehner's backup plan for averting the "fiscal cliff."
Gold for February delivery fell $3 to finish at $1,667.70 an ounce. In March contracts, silver fell 55.3 cents to $31.116 an ounce, copper fell 4.8 cents to $3.6055 a pound and palladium rose $7.40 to $698.35 an ounce. January platinum dropped 80 cents to $1,592.90 per ounce.
Benchmark crude jumped $1.58, or about 1.8 percent, to finish at $89.51 per barrel in New York. It was the biggest gain in a month.
In other energy trading, heating oil rose 3.91 cents to finish at $3.0356 a gallon. Natural gas fell 9.8 cents, or 2.9 percent, to $3.32 per 1,000 cubic feet after rising for two straight days. Wholesale gasoline gained 5.22 cents to finish at $2.7431 a gallon.