Oil prices declined on concerns over the global oil glut. The oil driller Baker Hughes reported on Thursday that the number of active U.S. rigs climbed by 12 rigs to 640 last week. It was the first rise since December 5, 2014.

Combined oil and gas rigs rose by 2 to 859.

News that Chinese regulators opened an investigation into suspected stock market manipulation also weighed on oil prices.

Traders expect the results of talks on the Iranian nuclear program. Talks will continue until July 07. The head of the International Atomic Energy Agency (IAEA) said on Friday that Iran and the agency have worked out "some ways forward".

WTI crude oil for August delivery decreased to $55.69 a barrel on the New York Mercantile Exchange.

Brent crude oil for August fell to $60.44 a barrel on ICE Futures Europe.

Gold traded higher on a weaker U.S. dollar as investors remained cautious ahead of the Greek referendum on Sunday. Greek Prime Minister Alexis Tsipras said on Friday that that Greece's debt was not sustainable. He also noted that the vote "No" would not mean that Greece have to leave the Eurozone.

Tsipras also said that he asked Greece's lenders to accept a 30% haircut on the country's debt. He pointed out that he also wants a 20-year "grace period" on repaying the rest debt.

Greek Finance Minister Yanis Varoufakis said on Friday that a deal between Greece and its creditors will be reached regardless of the outcome of Sunday's referendum. He noted that a deal was "more or less done".

Head of the Eurogroup Jeroen Dijsselbloem Jeroen Dijsselbloem said on Friday that Greece faced a difficult future regardless of the outcome of the referendum on Sunday.

He also said that a deal between Athens and its lenders is near is "completely false". He added that no new proposals have been sent to Greece.

August futures for gold on the COMEX today rose to 1166.90 dollars per ounce.

West Texas Intermediate futures for August delivery dropped to $56.63 (-0.53%). Meanwhile Brent crude for August fell to $61.86 (-0.34%) a barrel.

Crude oil prices fell after sources reported that the number of rigs in the U.S. rose by 12 to 640, intensifying concerns of a prolonged supply glut around the globe. According to Reuters, Goldman Sachs analysts believe that U.S. oil production growth will reach 135,000 barrels per day year-on-year by the end of this year. Meanwhile 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. At the same time Russia doesn't want to lose its position as well.

"U.S. shale producers have brought down the breakeven cost from $35 to $20 per barrel," ANZ bank said on Friday. Demand remains subdued. Considering market conditions economists say that prices may decline further.

Market participants are also waiting for an outcome of negotiations with Iran.

Gold slightly rebounded to $1,165.60 (+0.18%) an ounce. The precious metal has held above a 3-1/2 month low on Friday, as softer-than-expected U.S. jobs report tempered expectations for a September rate hike by the Federal Reserve and weighed on the dollar. Bullion declined on Thursday, but it climbed after the jobs report. Nevertheless the U.S. dollar is still on track for a second weekly gain in a row as Greece's crisis weighs on the euro. A strong greenback puts pressure on gold.

According to the Labor Department, the U.S. economy generated 223,000 jobs in June vs 230,000 expected.

(raw materials / closing price /% change)

Oil 56.56 -0.65%

Gold 1,165.20 +0.15%