Oil and industrial metals also got a boost when China Premier Wen Jiabao said his country is on track for 8 percent growth this year. China is one of the world's largest buyers of copper and oil.
In the U.S, the Labor Department said employers cut 35,000 jobs last month, far fewer than the 50,000 projected by economists polled by Thomson Reuters. The unemployment rate stayed at 9.7 percent. Economists had forecast a slight rise to 9.8 percent.
Signs of economic improvement embolden investors to jump into riskier assets. A stronger economy also means higher demand for raw materials.
Benchmark crude for April delivery rose $1.29 to settle at $81.50 a barrel on the New York Mercantile Exchange.
In other Nymex trading in April contracts, heating oil rose 2.87 cents to $2.0974 a gallon, and gasoline gained 3.73 cents to settle at $2.2710 a gallon. Natural gas rose 1.8 cents to $4.593 per 1,000 cubic feet.
Copper for May delivery jumped 4.2 cents to settle at $3.4175 a pound. May silver rose 20.6 cents to $17.382 an ounce, while March palladium climbed $13.65, or 3 percent, to settle at $475.40 an ounce.
Gold, which trades more frequently with currencies than other industrial metals, rose slightly as the dollar dropped. Gold is often seen as a hedge for weakness in the dollar.
April gold rose $2.10 to settle at $1,135.20 an ounce. The ICE Futures US dollar index, which measures the dollar against six foreign currencies, fell 0.1 percent.
Elsewhere, grains were mixed. Grain prices have been volatile in recent days as wet weather in South America has affected harvesting and traders prepare for next week's crop report that will update supply and demand of the gains.
May soybeans rose 0.75 cents to $9.4275 a bushel. Wheat fell 8.75 cents to settle at $4.935 a bushel, while corn dipped 7.5 cents to $3.755 a bushel.
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