Oil prices have declined on scepticism that an OPEC meeting later in November will result in action to address mounting supplies. US benchmark West Texas Intermediate for December delivery dropped $US1.03 to $US74.61 a barrel on the New York Mercantile Exchange. European benchmark Brent oil for delivery in January fell 84 US cents to $US78.47 a barrel. Traders are fixated on the November 27 meeting of the Organisation of Petroleum Exporting Countries. Despite a drop of more than 25 per cent in oil prices since June, the cartel is divided on whether to take action. Weak economic data from China, Japan and other regions has stoked fears of a glut. Gold prices closed at their highest level in nearly three weeks, spurred by a drop in the US dollar and tensions in Eastern Europe and the Middle East. Gold for December delivery rose 1.2 per cent to $US1,197.10 a troy ounce, the highest settlement since October 30 for the most actively traded gold contract on the Comex division of the New York Mercantile Exchange. Germany's ZEW index, a widely followed measure of economic confidence, rose in November for the first time in almost a year, suggesting an upturn in the region's prospects after a year of weakness. The unexpected gain gave the euro a boost and weighed on the US dollar. Political uncertainty also gave gold a boost. Two Palestinians attacked worshipers in a Jerusalem synagogue on Tuesday, killing four and sparking new fears about further unrest in Israel. In Europe, German Chancellor Angela Merkel expressed concern late on Monday that Russia's territorial ambitions could extend beyond Ukraine. Copper futures closed lower on the London Metal Exchange, remaining down on the day after poor economic data out of China. The LME's three-month copper contract was down 1.1 per cent at $US6,631.00 a metric ton at Tuesday's PM kerb close. According to the Chinese National Bureau of Statistics, the average price of new homes in 70 Chinese cities in October was down 0.8 per cent. Aluminium closed down 0.9 per cent at $US2,011.00 a ton, zinc closed 0.4 per cent lower at $US2,248.00 a ton, nickel fell 1.0 per cent to finish at $US15,650.00, lead closed down 1.0 per cent at $US2,024.00 a ton, and tin closed down 0.6 per cent at $US19,600.00.