Oil prices continued to decline toward 11-year low on concerns over global oil oversupply. The International Energy Agency (IEA) said on Friday that the global oil oversupply could rise next year.

"Consumption is likely to have peaked in the third quarter and demand growth is expected to slow to a still-healthy 1.2 mb/d in 2016, as support from sharply falling oil prices begins to fade," the IEA pointed out.

Iran plans to increase its production after a lift-off of sanctions.

WTI crude oil for January delivery slid to $35.60 a barrel on the New York Mercantile Exchange.

Brent crude oil for January dropped to $37.90 a barrel on ICE Futures Europe.

Gold price declined on a stronger U.S. dollar. Analysts expect gold to trade in the range $1,065-$1,085 dollars per ounce ahead the release of the Fed's monetary policy meeting results on Wednesday. Analysts expect that the Fed will start raising its interest rate this month.

Gold is traded in U.S. dollars. It suffers when the U.S. dollar strengthens, becoming more expensive for holders of other currencies.

The National Bureau of Statistics said on Saturday that China's industrial production increased 6.2% year-on-year in November, exceeding expectations for a 5.6% rise, down from a 5.6% gain in October.

Fixed-asset investment in China climbed 10.2% year-on-year in the January-November period, beating expectations for a 10.1% increase, after a 10.2% rise in the January-October period.

Retail sales in China increased 11.2% year-on-year in November, exceeding expectations for a 11.1% gain, after a 11.0% rise in October.

These data indicates that the Chinese economy was recovering in the fourth quarter.

West Texas Intermediate futures for January delivery declined to $35.45 (-0.48%), while Brent crude fell to $37.70 (-0.61%) after the International Energy Agency said the global supply glut would not just remain, but also worsen in 2016.

The IEA monthly report said the growth of global oil demand will slow to 1.2 million barrels a day next year compared with 1.8 million barrels a day in 2015. Meanwhile OPEC suggests global demand growth to slide to 1.25 million barrels a day from 1.53 million barrels a day in the current year. Market participants are also preparing for additional supplies from Iran, which are expected to hit the market next year.

Gold is currently at $1,075.00 (-0.07%) as investors await the Fed meeting later this week. The central bank of the U.S. is widely expected to raise rates at its December 15-16 meeting. Higher rates increase the opportunity cost of holding the non-interest paying precious metal and reduce demand for it. Bullion has already lost 9% of its price this year.

Assets in SPDR Gold Trust, the biggest gold exchange traded fund, are at their lowest since September 2008, while options data suggest that investors are ready for the price to decline to $1,000 an ounce.

(raw materials / closing price /% change)

Oil 35.36 -0.73%

Gold 1,073.90 -0.17%