Watch oil, gold and the value of the US dollar this week as fighting worsens in Libya, unrest spreads through the rest of the region and a major protest which may hit Saudi Arabia on Friday night, our time.

The surge in oil prices on Friday helped gold go higher and hurt the US dollar which had already been weakened by the emergence of a probable rate rise in Europe next month.

Global prices ended at their highest level for more than two years, oil also rose, but copper, another leading indicator, was weaker

The way the fears about oil and inflation undermined the impact of the reasonable jobs report for February was instructive and will be repeated now for months to come until the Middle East settles.

The greenback's weakness and the unrest in the Middle East will be the major drivers of commodity market action from now on.

As speculation grows about a rate rise in Europe, the US dollar will fall, sending commodity prices higher, especially oil and gold, and adding to the inflationary pressures in the US (but helping cap those in the eurozone and Australia).

Economic reports from the US and China for example, will have a limited impact. Any sign that the eurozone bailouts of Ireland and Greece last year are in danger should also be monitored ahead of a major European leaders' summit later this month on the question and how to set up a system to resolve future problems (Portugal?).

The probable rate rise in Europe next months from the ECB (signalled on Thursday night by