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AAP

2012-11-07

A summary of trading in key commodities markets overseas:

ENERGY

Oil prices have gained as traders track the presidential election in the United States, the world's biggest consumer of crude oil.

New York's main contract, light sweet crude for delivery in December, on Tuesday soared $US3.06 from Monday's close, settling at $US88.71 a barrel.

In London trade, Brent North Sea crude for December jumped $US3.34 to $US111.07 a barrel.

The New York oil market traced a solid US stocks rally as Americans went to the polls in a tight race between Democratic President Barack Obama and Republican challenger Mitt Romney.

The West Texas Intermediate (WTI) futures contract surged $US3.57 at the peak of intraday trade, to $US89.22, before closing at its highest level since October 23. It was the second straight session of gains.

PRECIOUS METALS

Gold has snapped higher, as signs of an uptick in physical buying and a coming set of political and economic events push traders betting on lower prices to cash out.

The most actively traded gold contract, for December delivery, on Tuesday gained $US31.80, or 1.9 per cent, to settle at $US1,715 a troy ounce on the Comex division of the New York Mercantile Exchange.

Silver for December delivery gained 2.9 per cent to settle at $US32.034 a troy ounce.

BASE METALS

Base metals have closed higher on the London Metal Exchange (LME), helped by a soft US dollar, but trading cautiously as the US presidential election got underway.

At the PM kerb close on Tuesday, LME three-month copper was up 0.7 per cent at $US7,700 a metric ton.

A weaker US dollar and a firmer tone in the wider financial markets helped prop up base metal markets Tuesday.

Tin rose the most of the base metals Tuesday, ending the session at $US20,620/ton, up 2.6 per cent on the day.