Oil prices traded higher on expectations for higher oil demand and on a weaker U.S. dollar. Saudi Arabia's oil minister, Ali al-Naimi, has said on Monday that he expects oil demand to rise in the second half of this year, while oil supply declines.

Investors are awaiting OPEC's meeting on June 05. It is expected that OPEC keeps unchanged its oil production.

Investors are also awaiting the release of U.S. crude oil inventories. Analysts expect U.S. crude oil inventories to decline by 857,000 barrels in the week ending May 29.

WTI crude oil for July delivery rose to $60.88 a barrel on the New York Mercantile Exchange.

Brent crude oil for July increased to $65.28 a barrel on ICE Futures Europe.

Gold price traded higher on a weaker U.S. dollar and on concerns over the Greek debt crisis. The U.S. dollar declined against the most major currencies after the weaker-than-expected U.S. factory orders data. Factory orders in the U.S. declined 0.4% in April, missing expectations for a flat reading, after a 2.2% gain in March. March's figure was revised up from a 2.1% rise.

The drop was driven by lower orders for durable goods, which declined by 1.0% in April.

Non-durable goods orders were up 0.2% in April. Orders for transportation equipment plunged by 2.4% in April, after a 15.1% rise in March.

The Greek debt crisis also supported gold price. The head of the Eurogroup Jeroen Dijsselbloem said on Tuesday that the progress in debt talks between Greece and its creditors would not be enough to sign an agreement this week.

"As long as it doesn't meet economic conditions, we can't come to an agreement. It's not right to think that we can meet half way," he noted.

Dijsselbloem believes that a deal between Greece and its creditors could be reached.

June futures for gold on the COMEX today rose to 1192.60 dollars per ounce.

(raw materials / closing price /% change)

Oil 60.20 -0.17%

Gold 1,188.70 -0.09%