Gold at another all time high, commodities rally

NEW YORK: Commodities rose broadly Wednesday as the dollar tumbled to a fresh 14-month low against other major currencies.
Gold prices soared to a new record high of US$1,072 an ounce in early trading, before giving up 30 cents to settle at $1,064.70 an ounce on the New York Mercantile Exchange on some profit-taking.
Oil prices, meanwhile, rose above $75 a barrel for the first time in a year.
The gains came as the ICE Futures U.S. dollar index, a widely used benchmark of the dollar's movement against other major currencies, tumbled to its lowest point since August 2008.
A weak dollar makes commodities cheaper for foreign buyers.
The dollar has fallen steadily since March as investors become more confident about the economy's prospects for a solid recovery.
Their growing optimism has led them to dump safe-haven assets that have lower returns, like the dollar, in favor of risker investments like stocks and commodities.
Rising commodity prices helped buoy stocks, as did upbeat earnings reports from Intel Corp. and JPMorgan Chase & Co.
The Dow Jones industrials surged more than 150 points in afternoon trading, passing the 10,000 mark for the first time in a year.
Other metals also marked fresh highs. December silver gained 6.8 cents to $17.908 an ounce. Earlier in the session, prices rose to a new 13-month high of $18.175 an ounce.
October platinum added $5.80 to $1,358.60 an ounce after earlier rising to a contract high of $1,359.60.
Among industrial metals, December copper futures rose 5 cents to $2.8445 a pound.
Elsewhere on the Nymex, light, sweet crude for November delivery added $1.03 to settle at $75.18 on the New York Mercantile Exchange.
The last time crude finished above $75 a barrel was exactly one year ago.
Gasoline for November delivery climbed 2.57 cents to settle at $1.8575 a gallon, and heating oil for November delivery added 1.93 cents to settle at $1.9427 a gallon.
Grain prices inched higher on the Chicago Board of Trade. December wheat futures rose 1.75 cents to $5.13 a bushel, while December corn added 1.25 cents to $3.83 a bushel.
November soybeans gained a penny to $9.94 a bushel.
In other trading, cotton, coffee and cocoa prices rose. Sugar and orange juice fell. - AP

Published: Thursday October 15, 2009 MYT 7:54:00 AMUpdated: Thursday October 15, 2009 MYT 8:00:29 AM