The market is continuing its rally this morning as more signs emerge that the global economy is taking steps toward a recovery. A weakening U.S. dollar is also giving support to commodities prices.

The weaker dollar is giving oil prices a lift. The commodity has surged above $71 a barrel. A weaker dollar makes oil cheaper for overseas buyers, since it’s priced in dollars. The United States Oil Fund (NYSEArca: USO) is up more than 1.5%.

Gold prices are also climbing even higher, now hitting a record $1,038 an ounce thanks to dollar weakness and fears of inflation, reports Bloomberg. The previous record was $1,033.90 an ounce, set in March 2008. SPDR Gold Shares (NYSEArca: GLD) is up more than 2% this morning.

Meanwhile, the dollar continues its downward slide, thanks to an interest-rate hike by the Bank of Australia. The move is the first tightening by a major central bank since the global downturn began, reports Peter A. McKay for The Wall Street  Journal. The move pushed the dollar to a 14-year low. A weak dollar can be played with the PowerShares DB U.S. Dollar Bearish (NYSEArca: UDN), which is up nearly 1% this morning.

For more stories on gold and oil, visit our gold and oil categories.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.