DENVER (AP) -- A series of reports offering signs of a strengthening economy boosted prices Wednesday for industrial metals, particularly palladium.
Grains and energy prices also rose as the dollar grew weaker against other currencies, making commodities more attractive to overseas buyers.
Palladium and platinum are used in making catalytic converters for cars. Both metals have seen fairly steady gains for several months.
Palladium prices surged with a Commerce Department reports that showed retail spending rose sharply in March, in part because incentives fueled a 6.7 percent increase in auto sales.
The government also said businesses built stockpiles last month, another encouraging sign that companies expect demand to improve.
"As the economy continues to shows signs of recovery, the prospects for those economic or industrial type metals grows along with that," said Dave Meger, vice president of metals trading at Vision Financial Markets.
Prices for industrial metals have gained steadily for several weeks amid speculation about improving demand and because investors are seeking to diversify their portfolios, Meger said.
Palladium for June delivery hit levels not seen since March 2008, settling at $548 an ounce, up $26.20. July platinum rose $16.90 to $1,734.20 an ounce.
Silver is a precious metal but also is used in a variety of products such as jewelry, batteries and electronics so it also benefits when industrial metals rise.
May silver rose 16.6 cents to $18.415 an ounce while May copper edged up 1 cent to $3.6105 a pound. Gold for June delivery added $6.20 to settle at $1,159.60 an ounce.
Meanwhile, oil prices rose after the Energy Information Administration said U.S. oil supplies dropped last week, surprising analysts. Benchmark crude for May delivery rose $1.79 to settle at $85.84 a barrel on the New York Mercantile Exchange.
In other Nymex trading in May contracts, heating oil rose 2.79 cents to settle at $2.2421 a gallon. Gasoline rose 2.34 cents to $2.3327 a gallon and natural gas rose 3.9 cents to $4.199 per 1,000 cubic feet.
For a third consecutive day, May sugar ended on a higher note, settling at 17.53 cents a pound, up 0.55 cent.
Grains were mixed. In July contracts, soybeans rose 1.5 cents to $9.77 a bushel; wheat fell 1.5 cents to $4.8725 a bushel and corn rose 5.25 cents to $3.6850 a bushel.
