AP: Commodities rise on growing economy, softer dollar
NEW YORK (AP) -- Commodities prices surged Tuesday on fresh signs of a strengthening economy and more weakness in the dollar.
Platinum and palladium rose sharply for a second day after strong auto sales reports provided the latest sign of a rally in the industrial sector. Those two metals are used in making catalytic converters for cars.
Ford Motor Co. said its January sales jumped 25 percent, while General Motors Co.'s sales jumped 14 percent, the latest positive signs for the economy. Sales had hit their lowest levels in 26 years during January 2009 because of the recession.
Platinum for April delivery rose $39.50, or 2.6 percent, to settle at $1,578.80 an ounce. March palladium rose $16.20, or 3.8 percent, to $444.75 an ounce.
Other industrial metals rose as well. Silver for March deliver rose 8.3 cents to $16.743 an ounce, while copper rose 0.6 cents to $3.0895 a pound.
Metals have rebounded from mostly lower trading last week following a strong manufacturing report Monday and a rise in auto sales and the number of people with contracts to buy homes. The National Association of Realtors index of sale contracts rose 1 percent in December, its ninth increase in the past 10 months.
The Institute for Supply Management's manufacturing index rose for the sixth straight month in January, hitting its highest level since August 2004 - the surest sign yet that the sector is rebounding from the recession.
Gold climbed as the dollar fell. April gold rose $13.00 to $1,118.00 an ounce. The ICE Futures US dollar index fell 0.3 percent.
Energy prices also moved higher on encouraging economic signs. A strong manufacturing sector would drive up demand for oil and other energy products.
Benchmark crude for March delivery rose $2.80 to $77.23 a barrel on the New York Mercantile Exchange.
In other Nymex trading in March contracts, heating oil rose 7.68 cents to $2.0317 a gallon, and gasoline added 8.58 cents at $2.0179 a gallon. Natural gas rose 2 cents to $5.454 per 1,000 cubic feet.
Elsewhere, grains prices also rose. Grains had been hammered in recent weeks after the Department of Agriculture's January crop report showed more supply than analysts had expected.
Wheat for March deliver rose 12.5 cents to $4.8725 a bushel, while soybeans rose 15.75 cents to $9.255 a bushel. Corn jumped 6 cents to $3.65 a bushel.
