West Texas Intermediate futures for September delivery fell to $50.24 (-1.22%); Brent crude declined to $56.58 (-0.81%) after late Tuesday data from the American Petroleum Institute surprised with a 2.3-million-barrel increase in U.S. crude inventories. A report from the U.S. Energy Information Administration is due today at 14:30 GMT, and analysts forecast a 1.6 million-barrels decline in stockpiles. Meanwhile a poll by Reuters showed that eight analysts expect U.S. commercial crude oil stocks to have risen by 2.3 million barrels on average in the week ended July 17.

"Any indication of rising oil inventories in this week's EIA weekly report is likely to weaken oil prices further," ANZ analysts said.

Gold fell to $1,092.80 (-0.97%) an ounce suggesting that downward pressure on the metal persisted even after the 4% decline on Monday (the most dramatic drop in almost two years). Holdings in top gold fund SPDR Gold Trust declined to their lowest since 2008 and many analysts forecast bullion prices to fall further.

"We can't see any bullish factor. Inflation is well contained and we don't see a systemic crisis that might push people to buy gold," Wing Fung Financial Group's head of research, Mark To, said.

Gold top consumers India and China did not increase demand despite prices holding near a five-year low.

Meanwhile mine closures are not expected to happen in the near future despite ongoing pressure on prices as operators instead try to reduce costs to keep operations going.

(raw materials / closing price /% change)

Oil 50.59 +0.46%

Gold 1,100.00 -0.32%