Commodities rise as dollar tumbles

New York Commodities prices rose sharply as the dollar weakened and investors jumped back into riskier assets following upbeat economic and earnings reports last week. Merck and Barclays provided hopeful signs on the economy. Traders bid up riskier investments like stocks and commodities while shedding safe-haven assets like the dollar. "When the dollar is down, it gives you a green light to buy commodities," said Jason Ward, an analyst with Northstar Commodity in Minneapolis.

The ICE Futures US dollar index, which measures the dollar against six other currencies, fell 0.8 percent. A cheaper dollar makes commodities, which are priced in dollars, more attractive to foreign investors. Factor in improving signs of economic recovery, and commodities were set for big gains. Industrial metals jumped following the strong signals on economic growth.

The Empire State manufacturing index rose to 24.91 this month, compared with a forecast of 18 and a reading of 15.92 in January. Silver for March delivery rose 70.1 cents, or 4.5 percent, to $16.148 an ounce, while copper jumped 13.75 cents, or 4.2 percent, to $3.2395 a pound. Platinum for April delivery rose $26.60 to settle at $1,537.70 an ounce, while palladium for March delivery gained $14.30, or 3.4 percent, to settle at $432.45 an ounce. April gold rose $29.80, or 2.7 percent, to settle at $1,119.80 an ounce.

(Courtesy AP)