The US dollar was lower as minutes from the Federal Reserve's December meeting indicated the extent and timing of policy was less clear.

The news sent gold higher. It is edging towards the US$1,300 an ounce mark on the spot market, trading above $1,297/oz earlier and encouraging investor favour for gold equities.

Spot iron ore is worth more than $74 a tonne according to Mysteel.com, although analysts say the recent price rally is not sustainable, Bloomberg reported.

It cited Goldman Sachs and Morgan Stanley saying the price would drop back, with the rally fuelled by mills restocking ahead of the Chinese New Year and supply set to increase this year.

Metals and mining stocks closed 1.48% higher in Toronto yesterday.

Embattled seafloor mining hopeful Nautilus Minerals (TSX: NUS) was one of the bigger movers, rising more than 36%.

However in dollar terms it rose just C2c to 7.5c, remaining near a 52-week low as it said it had gained a 30-day extension to a loan maturity date and was in discussions to secure a US$5 million loan before January 14 in order to continue operations.