Oil prices rose on a weaker U.S. dollar. The U.S. dollar declined against other major currencies after the release of the U.S. labour market data. The U.S. economy added 223,000 jobs in June, missing expectations for a rise of 230,000 jobs, after a gain of 254,000 jobs in May. May's figure was revised down from a rise of 280,000 jobs.

The U.S. unemployment rate dropped to 5.3% in June from 5.5% in May. It was the lowest level since April 2008.

Analysts had expected the unemployment rate to decline to 5.4%.

Gains were limited due to yesterday's U.S. crude oil inventories data. The U.S. Energy Information Administration (EIA) released its crude oil inventories data on Wednesday. U.S. crude inventories increased by 2.4 million barrels to 465.4 million in the week to June 26.

Traders expect the results of talks on the Iranian nuclear program. Talks will continue until July 07.

WTI crude oil for August delivery increased to $57.77 a barrel on the New York Mercantile Exchange.

Brent crude oil for August rose to $62.71 a barrel on ICE Futures Europe.

Gold traded lower, recovering a part of its losses as the U.S. dollar declined after the release of the U.S. labour market data. The U.S. economy added 223,000 jobs in June, missing expectations for a rise of 230,000 jobs, after a gain of 254,000 jobs in May. May's figure was revised down from a rise of 280,000 jobs.

The strongest job gains showed the services sector. Retailers added 33,000 jobs in June, the health-care sector added 40,000, while leisure and hospitality rose by 22,000.

The manufacturing sector added only 4,000 jobs.

The U.S. unemployment rate dropped to 5.3% in June from 5.5% in May. It was the lowest level since April 2008.

Analysts had expected the unemployment rate to decline to 5.4%.

The decline was driven by fewer people were looking for work.

Average hourly earnings were flat in June, missing forecast of a 0.2% gain, after a 0.2% rise in May. May's figure was revised down from a 0.3% increase.

The labour-force participation rate plunged to 62.6% in June from 62.9% in May. It was the lowest level since October 1977.

These figures are signs that the U.S. job growth slowed. The Fed may delay to hike its interest rate due to the weak wage growth figures and low inflation.

The Greek debt crisis remains in focus. According to traders, the demand for gold could increase if Greece leaves the Eurozone, or if Italy, Spain or Portugal will be affected by Greece's problems. Greek Prime Minister Alexis Tsipras said in a speech on Wednesday that Greeks should vote "no" in Sunday's referendum.

August futures for gold on the COMEX today declined to 1161.30 dollars per ounce.

West Texas Intermediate futures for August delivery advanced to $57.12 (+0.28%) after yesterday's decline. This decline was caused by data from the Energy Information Administration, which showed that U.S. crude inventories rose by 2.4 million barrels in the week ending June the 26th (the first weeks increase since April). Meanwhile Brent crude for August advanced to $62.28 (+0.44%) a barrel.

The stockpiles data came in after the previous report showed that U.S. oil production rose by 0.2%. Supply from the Organization of the Petroleum Exporting Countries rose to a three-year high of 31.60 million barrels a day in June from 31.30 million barrels a day in May.

The Energy Information Administration also reported that distillate stockpiles, which include diesel and heating oil, rose 392,000 barrels. Gasoline stocks fell 1.8 million barrels.

Gold is currently at $1,166.90 (-0.21%) an ounce. Investors put concerns over Greece aside and concentrated on today's U.S. payrolls report. Investors will be looking for clues to the timing of the data-determined rate hike by the Fed. Strong data would mean that there is a continuous improvement in labor market, which is required to justify a rate hike.

Gold may become more attractive if Greece leaves the euro zone or a similar scenario happens in other European countries.

(raw materials / closing price /% change)

Oil 56.87 -0.16%

Gold 1,167.80 -0.13%