A summary of trading in key commodities markets overseas:
Oil prices fell as US lawmakers remained deadlocked over a budget and debt ceiling deal and as negotiations began on Iran's nuclear program in Geneva.
The main US contract, West Texas Intermediate (WTI) for delivery in November, slid $US1.20 lower, closing at $US101.21 a barrel on the New York Mercantile Exchange.
Brent North Sea crude for November settled at $US109.96 a barrel in London trade, down $US1.08 from Monday's close.
Gold futures had eased by the close of floor trading, but later regained some ground as investors weighed the changing situation on the US debt ceiling negotiations.
Gold for December delivery, the most actively traded contract, on Tuesday finished the regular session down $US3.40, or 0.3 per cent, at $US1,273.20 a troy ounce on the Comex division of the New York Mercantile Exchange.
But gold prices pushed higher in after-hours trade following reports that a Senate effort to craft a bipartisan plan had stalled. Futures snapped as high as $US1,287.70 an ounce, a rise of 0.9 per cent, before paring those gains.
Thursday is the deadline set by the Treasury Department to raise the federal borrowing limit.
US Senate leaders on Monday said they had made significant progress toward an agreement to avert a breach of the US borrowing limit and to re-open portions of the federal government that have been shut down since the beginning of the month.
Still, the House of Representatives pushed ahead with a competing plan. In response, the Senate suspended its own set of negotiations, sparking a turnaround in gold and some other markets.
Copper futures closed little changed on the London Metal Exchange (LME) as investors weighed the negative impact of a firm US dollar against then signs that the budget impasse in the US may be drawing to a close.
At the PM kerb close on Tuesday, LME three-month copper was down 0.2 per cent at $US7,239 a metric ton.
Aluminium was down 1.1 per cent at $US1,849 a ton.The US dollar strengthened on Tuesday amid hopes that a Senate deal to end the government shutdown and avert the US from defaulting on its debt is in sight. Since base metals are priced in US dollars, they are more expensive to other currency holders when the greenback gains.