Oil prices traded lower on the stronger U.S. dollar and due to profit-taking before the long weekend. U.S. markets and markets of most European countries will be closed for a public holiday on Monday.

The U.S. consumer price inflation excluding food and energy gained 0.3% in April, exceeding expectations for a 0.2% increase, after a 0.2% rise in March. It was the largest increase since January 2013.

The rise was driven by higher costs for housing, medical care, furniture and vehicles.

On a yearly basis, the U.S. consumer price index excluding food and energy remained unchanged at 1.8% in April, beating forecasts of a decline to 1.7%.

The core consumer inflation data indicates that the Fed might start to hike its interest rate later this year.

The global oil glut also weighed on oil prices. Investors expect that OPEC will maintain its strategy at it next meeting in June 05.

Geopolitical tensions in the Middle East support oil prices.

Investors are awaiting the release of the number of the U.S. oil rigs later in the day.

WTI crude oil for June delivery decreased to $59.84 a barrel on the New York Mercantile Exchange.

Brent crude oil for June fell to $65.45 a barrel on ICE Futures Europe.

Gold price traded lower on U.S. inflation data. Gold price declined by 1.6% since the beginning of this week. It was the largest drop since April 20-24.

The U.S. consumer price inflation rose 0.1% in April, in line with expectations, after a 0.2% gain in March.

On a yearly basis, the U.S. consumer price index fell to -0.2% in April from -0.1% in March. It was the lowest level since October 2009. Analysts had expected the index to remain unchanged at -0.1%.

The U.S. consumer price inflation excluding food and energy gained 0.3% in April, exceeding expectations for a 0.2% increase, after a 0.2% rise in March. It was the largest increase since January 2013.

The rise was driven by higher costs for housing, medical care, furniture and vehicles.

On a yearly basis, the U.S. consumer price index excluding food and energy remained unchanged at 1.8% in April, beating forecasts of a decline to 1.7%.

The core consumer inflation data indicates that the Fed might start to hike its interest rate later this year.

Investors are awaiting a speech by the Fed Chair Janet Yellen, which is scheduled to be at 17:00 GMT. Yellen will speak about the prospects of the U.S. economy.

July futures for gold on the COMEX today decreased to 1205.00 dollars per ounce.

According to the Bloomberg survey, 33 of 34 analysts and traders pointed out that the Organization of Petroleum Exporting Countries (OPEC) will stick with the strategy of favouring market share over oil prices at the next meeting in June 05. They expect that OPEC will maintain its daily production target of 30 million barrels.

Saudi Arabia said at the last meeting in November that cutting oil production to boost prices would not address the threat from shale and other higher-cost oil suppliers.

Oil prices climbed 46% since mid-January as oil producers lowered spending plans and the number of active U.S. drilling rigs declined.

(raw materials / closing price /% change)

Oil 60.72 +2.95%

Gold 1,206.30 +0.18%