US gold futures end $US5 higher

US gold futures finished $US5 higher overnight after initially surging to just below $US800 in electronic trade, as a dollar slump and record crude oil prices prompted bullion investors to enter the market.

However, analysts cautioned that a near-record high in speculative net long positions in the futures market could prompt a correction in gold before prices could rise further.

Most-active December gold on the COMEX division of the New York Mercantile Exchange settled up $US5.10 at $US792.60 an ounce. It hit a low of $US787.70.

In overnight electronic sessions, COMEX gold traded as high as $US798.30 as the dollar fell to a fresh record low against the euro and a major currency basket on speculation that the Federal Reserve will cut US interest rates.

COMEX December silver closed up 15 US cents or 1.1 per cent at $US14.430 an ounce, trading between $US14.290 and $US14.540.

LME

Copper closed lower overnight after a major wage deal, having risen to its highest level in over a week as the dollar tumbled on growing speculation of a US rate cut.

Analysts said sentiment was dented after workers at Southern Copper, one of the world's largest copper producers, reached a wage agreement on Saturday.

Copper for delivery in three months on the London Metal Exchange ended at $US7,845 per tonne compared with $US7,870 on Friday. Earlier, it touched $US7,969, the highest since October 18.

Three-months lead closed at $US3,640 a tonne, down $US20.

Zinc was firm at $US2,905 from $US2,900, tin was up at $US16,850 from $US16,450/16,500 and aluminium traded down at $US2,525 from $US2,538 on Friday.

Nickel traded down at $US31,550 from $US31,800 on Friday.

NYMEX

US crude oil futures ended sharply higher on Monday, rallying to a record high above $US93 as Mexico's weather-curbed oil output, a weak dollar and geopolitical tensions combined to lift prices.

On the New York Mercantile Exchange, December crude rose $US1.67, or 1.82 per cent, to settle at a record $US93.53 per barrel, trading from $US91.52 to an intraday record $US93.80.

In London, December Brent crude rose $US1.63, or 1.84 per cent, to settle at $US90.32 a barrel.