U.S. DOLLAR LOSSES PROPEL BROAD COMMODITY GAINS Commodities from gold to grains to cotton posted solid gains in a flurry of buying today as losses in the U.S. dollar and rising interest rates kindled fears of inflation and economic instability. Gains were most pronounced on the Commodity Exchange in New York, where gold jumped 12.40 dlrs and closed at 436.50 dlrs a troy ounce, and silver 22.5 cents to 6.86 dlrs a troy ounce. A key factor behind the advance was anticipation that inflation will be the only way for the major industrial nations to halt the slide in the value of the U.S. dollar, said Steve Chronowitz, director of commodity research with Smith Barney, Harris Upham and Co., in New York. The dollar tumbled one day after top finance officials from the seven largest industrial nations reaffirmed their commitment to support its value, and despite reports of intervention by the U.S. Federal Reserve Bank, traders said. Traders said it appears that the industrial nations, known as the Group of Seven, lack the ability to change the long-term direction of the currency markets. "Maybe they have some ideas or plans," said Chronowitz. "If they do, it's not evident." "It looks like there's no cure but to let the free market take values to where they should be. "One way or another, we will force our major trading partners to stimulate their economies," as a measure to correct the mounting U.S. trade deficit, Chronowitz said. "I think the markets believe, and have believed for a long time, that the only recourse is to reflate at some point. It's going to be a long and tedious process, but that's what's happening," he said. The falling value of the dollar makes U.S. commodities cheaper for foreign buyers, stimulating demand. At the same time, traders who are holding stocks and bonds saw the value of their investments falling and many are turning to commodities such as precious metals as a hedge, said Marty McNeill, a metals analyst in New York with the trading house of Dominick and Dominick. The reaction in the metal markets reverberated throughout the commodities markets, as grains, livestock, and cotton posted broad gains. Traders at the Chicago Board of Trade said attention in the grain markets has shifted from concern about burdensome supplies to the outlook that a lower dollar will stimulate export demand. After the close of trading, the Agriculture Department raised its estimate for grain imports by the Soviet Union by two mln tonnes from the month-earlier report. Live hogs and frozen pork bellies posted sharp gains on the Chicago Mercantile Exchange, while live cattle were moderately higher. Analysts said several factors boosted hog prices. They said hogs haven't been making the weight gains that are normal at this time of year, and farmers have been too busy with field work to market animals.