SINGAPORE, April 28 (Reuters) - Oil prices powered to an all-time peak near $120 a barrel on Monday on renewed supply fears, prompting investors to move into other commodities, such as metals and agricultural products.

However, investors may hold off taking large positions before the U.S. Federal Reserve’s interest rates decision on Wednesday, when it is expected to cut rates by a quarter percentage point from the current 2.25 percent. [ID:nN27414714]

U.S. light crude for June delivery CLc1 struck a record of $119.93 a barrel, as a strike closed a major British oil pipeline and as new violence in Nigeria reignited supply fears. [ID:nL28561802]

“Supply-side concerns underpinned the oil price,” said David Moore, a commodity strategist at the Commonwealth Bank of Australia.

Oil has risen five-fold since 2002, as booming demand from emerging markets such as China has coincided with long-term supply constraints and a slumping U.S. dollar. The latter has has attracted speculative fund inflows into commodities.

Reflecting the strength of commodities, the Reuters-Jefferies CRB index .CRB of 19 commodity futures, which has already climbed 16 percent this year, rose 0.7 percent by 0634 GMT.

On Monday, the dollar climbed to a two-month high against the yen, but the bounce is unlikely to signal a reversal of its long-term downward direction.

As the dollar weakens relative to the yen, euro and pound, holders of these currencies gain more purchasing power over dollar-denominated goods.

Gold XAU= rose to $892.30/893.30 an ounce from $886.90/888.30 an ounce late in New York on Friday, as surging oil boosted the metal's appeal as a hedge against inflation.

Copper, the leading industrial metal, also jumped, recovering from wobbling prices on Friday.

The July copper contract on the Shanghai Futures Exchange SCFN8 jumped 1.3 percent to 65,780 yuan a tonne by midday, helped by a strike in Chile and a bullish technical outlook. [ID:nSP170886]

The strike in Chile, the world’s largest copper producer, entered its 13th day on Monday. Codelco’s Andina and Salvador divisions remained shut, a company source said over the weekend, but the Teniente underground mine reopened on Saturday. [ID:nN27485651]

In agriculture, corn futures CK8 rose more 2.6 percent, while soybeans Sc1 were up 0.9 percent and wheat Wc1 rose 1.1 percent.

Rice futures RRN8 rose 0.5 percent despite mixed trade in Chicago in the previous session. Continued strong demand from Asia also helped Thai rice prices despite the CBOT sell-off. [ID:nBKK123091]

Vietnam banned rice speculation after a surge in buying over the weekend in southern Vietnam but said it had sufficient stocks for domestic consumption and exports. [ID:nHAN94623]

The ban is the latest sign of growing unease over food supplies around Asia, where some governments have been spooked by the possibility of a shortfall in staple rice and a three-fold price increase caused by export curbs by key suppliers including Vietnam. (Additional reporting by Fayen Wong in SYDNEY, Lewa Pardomuan and Nick Trevethan in SINGAPORE and Grant Mccool in HO CHI MINH CITY; Editing by Ben Tan)