Commodities prices are rising sharply as the dollar weakens and investors jump back into riskier assets following upbeat economic and earnings reports.

Better-than-expected profits at Merck and Barclays Tuesday provided hopeful signs on the economy. Traders bid up riskier investments like stocks and commodities while shedding safe-haven assets like the dollar.

"When the dollar is down, it gives you a green light to buy commodities," said Jason Ward, an analyst with Northstar Commodity in Minneapolis.

April gold, which typically moves in the opposite direction of the dollar, rose $29.80, or 2.7 percent, to settle at $1,119.80 an ounce.

Industrial metals, oil and grains are also higher.