Positive developments with the euro zone set to approve a second bailout for Greece as China slashed its banks' reserve requirements ration helped pave a generally good start for major commodities this week.

Oil prices jumped to reach nine-month highs, with the Brent and New York contracts hitting $121.15 and $105.44 a barrel, respectively, in early trading on Monday. It was the precious commodity's highest since May 5, 2011.

Brent North Sea crude for delivery in April rose 56 cents to close at $120.14 a barrel, while the West Texas Intermediate light sweet crude for March, New York's main contract, soared by $1.84 to $105.08.

The good news over Greece and China also spilled over to gold as spot prices closed higher in Europe on Monday.

"Prices across the complex are firmer after positive weekend news from China and Greece," Barclays Plc said in an e-mailed research note to Bloomberg News. "The flow of macroeconomic news, as well as market expectations of further accommodative global monetary policy measures, has helped sentiment stabilize so far this year."

At 1041 GMT (2141 AEDT) spot gold went 0.3 per cent higher at $1,728.94 a troy ounce, also spot silver up 0.5 per cent at $33.381 a troy ounce.

On Monday, the euro broke above $1.32 versus the dollar, enhancing the allure of dollar-denominated gold bullion.

Spot platinum was also up on Monday, 0.9 per cent at $1,642.50 a troy ounce at 1040 GMT (2140 AEDT), as well as spot palladium, 1.2 per cent higher at $689.83 a troy ounce.

Base metals likewise roared on, closing higher on Monday on the London Metal Exchange.

LME three-month copper ended the afternoon session at $8,235.50 a metric ton, up by 0.8 per cent versus Friday's close. The precious metal found support around $8,200 a metric ton and stayed in positive territory throughout the European day.

China slashed by half a percentage point the required amount of cash its banks must set aside as reserves, effective from Feb. 24, the People's Bank of China said Saturday.

European finance ministers, meanwhile, met in Brussels on Monday to discuss on a 130 billion-euro ($172 billion) Greek bailout.