Commodities prices rally as traders gain comfort from China’s confidence in European markets

More confident traders boost commodities prices

Commodities prices are rising after China says it’s confident that Europe’s efforts to restore financial stability will succeed.

Prices for most metals, grains and energy settled higher Thursday as traders moved money back into riskier assets. Gold, often seen as a safe harbor investment, fell.

Investors are taking comfort in China’s statements in support of Europe because it is a huge consumer of commodities and a major holder of European government debt.

Commodities also are benefiting from a weakening of the dollar against other currencies. That means commodities, which are priced in dollars, become more attractive to overseas buyers.