Gold was stuck in a tight range above $1,300 as equities gained ground, with investors appearing to set aside geopolitical worries concerning Ukraine.
Brent crude extended losses for a third straight session, as tensions in Iraq were not expected to threaten the OPEC producer's output.
The euro fell towards 9-month lows against the dollar on Tuesday, as investors positioned for a weak German sentiment survey.
U.S. stocks closed down in light volume trade for the first time in three sessions as developments in Ukraine and Russia troubled investors.
U.S. stock index futures signaled a higher open early with investors focused on corporate releases and continued tensions in Ukraine and Iraq.
Most Asian bourses followed Wall Street higher on Tuesday, except Chinese and Indian shares which failed to track Asia-wide gains.
U.S. stocks pared gains in light volume trading on Monday as investors looked for signs of easing in geopolitical tensions.
U.S. government debt yields stayed near recent lows as traders clung to safe-haven bond holdings amid tensions in the Middle East and Ukraine.
Gold slipped as investors eyed firmer equity markets and outflows, but held above $1,300 on concern over the Middle East and Ukraine.
U.S. crude oil edged up as traders moved to cover short positions amid expectations on further draws in domestic crude inventory stocks.
The Norwegian crown hit a seven-week high against the euro after Norway reported consumer inflation unexpectedly jumped in July.
Asian bourses saw robust gains on Monday following a positive lead from Wall Street last week as geopolitical jitters eased.
Wall Street looked set to open higher again on Tuesday, with tensions in Ukraine, Iraq and Israel still in focus.
European markets closed higher on Monday, following suit with Asia after a turnaround on Wall Street on Friday.
Stocks rose as investors weighed a U.S. military strike in Iraq and a possible lessening of tensions in the Russian-Ukraine crisis.
U.S. Treasury bonds continued to gain on Friday, after President Barack Obama authorized airstrikes on Iraq.
European shares closed lower for the seventh time in eight sessions on Friday. Geopolitical tensions continued to rattle investors' nerves.
Oil fell, as analysts said U.S. air strikes in Iraq might actually lower the risk of oil supply disruptions.
Gold rejected a 3-1/2 week high on Friday, but was set for its biggest weekly gain in seven as President Barack Obama authorized air strikes in Iraq.
The euro gained against the dollar and sterling, and investors flocked to the Swiss Franc and yen as Obama approved air strikes in Iraq.
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A Japanese lingerie maker recalled more than 20,000 brassieres after complaints that underwires suddenly poked out.
"That's very far down on my list," the Omega Advisors CEO said, noting that more opportunity will continue to exist in developed countries.
Few U.S. companies have a big exposure to the Russian ruble's ongoing collapse.