Oil prices hits multi-month lows after the release of the U.S. labour market data as the U.S. dollar strengthen. The U.S. economy added 215,000 jobs in July, missing expectations for a rise of 223,000 jobs, after a gain of 231,000 jobs in June. June's figure was revised up from a rise of 223,000 jobs.

The U.S. unemployment rate remained unchanged at 5.3% in July, in line with expectations. It was the lowest level since April 2008.

Average hourly earnings rose 0.2% in July, in line with forecasts, after a flat reading in June.

Concerns over the global oil glut grow due to a global economic slowdown and a nuclear deal with Iran and as oil production continues to increase.

Market participants are awaiting the release of the number of active U.S. rigs later in the day.

WTI crude oil for September delivery dropped to $43.94 a barrel on the New York Mercantile Exchange.

Brent crude oil for September fell to $48.89 a barrel on ICE Futures Europe.

Gold traded higher after the release of the U.S. labour market data. The U.S. economy added 215,000 jobs in July, missing expectations for a rise of 223,000 jobs, after a gain of 231,000 jobs in June. June's figure was revised up from a rise of 223,000 jobs.

The U.S. unemployment rate remained unchanged at 5.3% in July, in line with expectations. It was the lowest level since April 2008.

Average hourly earnings rose 0.2% in July, in line with forecasts, after a flat reading in June.

These figures are unlikely to be strong enough that the Fed starts to hike its interest rate in September. The weak wage growth figures and low inflation could also mean that the Fed will wait for the stronger U.S. economic data before raising its interest rates.

October futures for gold on the COMEX today rose to 1098.70 dollars per ounce.

West Texas Intermediate futures for September delivery climbed to $44.84 (+0.40%), while Brent crude advanced to $49.77 (+0.50%) as market participants paid attention to yesterday's report on U.S. crude stockpiles. However these gains failed to improve the general situation as both crudes are heading for sixth weekly declines. Investors are waiting for U.S. employment data to assess strength of the U.S. economy and timing of an imminent rate increase.

Investors remain focused on global supply glut issues. Crude oil fundamentals could worsen further as the U.S. seems to be getting closer to lifting its 40-year-ban on exports.

Gold slid to $1,087.60 (-0.23%). The precious metal is on track to post a 0.6% decline this week (the seventh weekly decline in a row).

Investors are anticipating U.S. employment data as Fed officials closely watch developments in the labor market. Economists forecast the U.S. economy created 223,000 jobs in July, just like it did in June. A strong report would intensify expectations of a rate hike in September. A higher rate would decrease demand for the non-interest bearing bullion and depress its prices.

(raw materials / closing price /% change)

Oil 44.84 +0.40%

Gold 1,089.00 -0.10%