LONDON (SHARECAST) - US crude oil settled higher on Monday, edging towards $64, as US equity markets rallied and the dollar weakened against major currencies. US light crude oil for August delivery settled up 42 cents at $63.98 a barrel on the New York Mercantile Exchange. Trading was volatile on Monday ahead of the contract expiry on Tuesday. Renewed optimism about an economic recovery also lifted demand for oil as traders cheered some good corporate earnings at the start of the week and news that small lender CIT Group has obtained a last-minute emergency financing rescue deal worth $3bn. Better than expected US data also fuelled brightened the economic outlook. The index of leading economic indicators, which is supposed to forecast economic trends for the next three to six months, rose a slightly better than expected 0.7% in June, according to a report from the Conference Board. Among precious metals gold trotted higher, settling at a five week high, as the dollar fell against major rivals and as it tracked a rise in oil prices. COMEX gold for August delivery advanced $11.30 to $948.80 an ounce as investors bought the yellow metal as a hedge against inflation. Other metals such as copper rose 5 cents to $2.47 a pound.

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