Oil briefly topped $80 per barrel to hit its highest since October 2008, while gold neared record highs scored last week as a retreating dollar and anticipation of increased demand enticed investors.
In soft commodities, the dollar's retreat to 14-month lows versus a basket of currencies saw ICE raw sugar futures set their sights on 28-1/2 year peaks, while Chicago wheat futures firmed.
The U.S. currency's weakness had little influence on base metals, with benchmark copper easing from recent one month highs.
Strength in global stock markets, fired further by Apple Inc's forecast-beating third quarter earnings, fed traders' appetite to sell dollars for higher yielding currencies. A weaker dollar increases the appeal of dollar-priced commodities for non-U.S. investors.
Analysts and fund managers said that underlying support for commodities was also being stoked by unprecedented monetary and fiscal stimulus, with leading economies still maintaining low interest rates to encourage growth.
"In terms of priming the global economy and stabilisation — that process has not even topped out," said Ashok Shah, at London and Capital.
"Around the world, the authorities are doing everything to ensure the growth rate that we are seeing remains resilient and continues to improve…that really to me is the main driver," he added.
OPEC SAYS $80 OIL "A BIT HIGH"
While crude crept back under $80 in European trade, oil prices have surged by almost $10 since the start of October, on optimism that the strength of corporate earnings could be a sign of economic recovery and renewed oil demand growth.
OPEC Secretary-General Abdullah al-Badri said on Tuesday that oil prices at $80 a barrel were "a bit high", but they had helped the group revive major upstream investment projects to create a larger supply cushion.
"There was not any strong fundamental factor for the move from $75 to $80. Now the market is looking for a fundamental story and OPEC is starting to make some noise," said analyst Olivier Jakob of Petromatrix.
Analysts were looking to inventories data from the American Petroleum Institute later on Tuesday for additional direction.
GOLD RUSH
Spot gold rose to $1,065 an ounce, nearing last week's record $1,070.40, while platinum and palladium reached their highest in more than a year, buoyed by gold and supply concerns.
Standard Bank analyst Walter de Wet said given the dearth of physical demand for bullion, gold was primarily driven by the dollar, which in turn was in thrall to sentiment on the equity markets as earnings season advances.
"(The rise of gold) is a dollar story at this stage, because in terms of real physical demand, there is not much," he said.
Not everyone is buying into the bull story for gold.
Nicholas Koutsoftas, a portfolio manager at GE Asset Management, said gold is overvalued at its current near-record levels, with underlying supply and demand fundamentals justifying prices closer to $750-850 an ounce.
In other commodity markets, ICE March raw sugar stood at 24.00 cents per pound, near 28-1/2 year peaks hit recently at 26.25 cents.
Chicago Board of Trade December wheat futures stood at $5.17-3/4, supported by the weaker dollar.
