"That the Bloomberg dollar index sells off to levels not seen since the multi-year lows on the 6/7th January 2021 has been further supportive of this risk bounce since last week's inflation inspired risk off," Marex Spectron's Alastair Munro said.

"And once again we can see from these price gains across the ferrous, LME and wider commodity space as well as the stock markets how they are all trading in lock step."

Base metals bar aluminium rose on the London Metal Exchange, with copper up 0.3% to US$10,376.25 per tonne.

Munro said iron ore also benefitted from a surge in crude steel production, with China's output up 13.4% year-on-year in April to 97.85 million tonnes, putting it on track for a record year.

The MySteel 62% Australian fines were up 1.88% to $217/t.

Gold has risen to a level last seen in January and was above $1,870 an ounce on the spot market at the time of writing.

Gold major Newmont reached a fresh multi-year high of $74.78 intraday before closing up 0.5% to $74.38.

Chile-focused copper producer Antofagasta fell more than 5% in London yesterday as concerns grow over proposed tax increases in the country.