Metals, energy and grain prices all rise in light trading as the dollar weakens

Commodities mostly climb as dollar weakens

NEW YORK — Commodities prices have closed higher as investors took advantage of a drop in the dollar.

A weaker dollar makes commodities that are traded in dollars cheaper for foreign investors, and that lifts demand for futures. The ICE Futures US dollar index, which measures the dollar against six currencies, is down 0.5 percent Friday.

The dollar has been on a steady climb in recent weeks as investors worry about debt problems in Europe. Those concerns have led investors to sell positions in the euro and buy up dollars that are seen as safer. Friday brought a brief pause in that trend, allowing commodities to rally.

HSBC analyst James Steel notes that trading was also very light, which can add to volatility and increase gains.

April gold, which often moves opposite the dollar, is up $10.40 at $1,118.90 an ounce.