Oil prices declined on concerns over the global oil oversupply. Dow Jones reported that according to an Iranian oil official, the country would not cooperate to reduce oil output until its oil exports rise by 1.5 million barrels per day (bpd).

Reuters reported that according to its survey, OPEC's oil output climbed to 32.60 million bpd from a revised 32.31 million bpd in December due to higher output from Iran.

Earlier, oil prices increased on speculation that top oil producer could lower their oil output.

Market participants are also awaiting the release of the number of active U.S. rigs later in the day. The oil driller Baker Hughes reported on last Friday that the number of active U.S. rigs declined by 5 rigs to 510 last week. It was the lowest level since April 2010.

WTI crude oil for March delivery fell to $33.31 a barrel on the New York Mercantile Exchange.

Brent crude oil for March declined to $32.77 a barrel on ICE Futures Europe.

Gold price rose despite a stronger U.S. dollar. The Bank of Japan's (BoJ) interest rate decision supported gold. The central bank on Friday lowered its interest rate to -0.1% from 0.1%, adding that it could cut its interest rate further if needed. Analysts did not expect this decision.

Market participants also eyed today's U.S. economic data. The U.S. Commerce Department released gross domestic product data on Friday. The U.S. preliminary gross domestic product increased by 0.7% in the fourth quarter, missing expectations for a 0.8% gain, after a 2.0% rise in the third quarter.

The slower rise was mainly driven by a slower rise in consumer spending.

Consumer spending grew 2.2% in the fourth quarter, after a 3.0% increase in the third quarter.

Exports declined 2.5% in fourth quarter as a strong U.S. dollar weighed on exports, while imports increased 1.1%.

In 2015 as whole, the U.S. economy expanded 2.4%, after a 2.4% growth in 2014.

February futures for gold on the COMEX today increased to 1117.40 dollars per ounce.

The People's Bank of China (PBoC) on Friday injected 100 billion yuan ($15 billion) into market to boost liquidity via seven-day reverse repos and 28-day reverse repos.

The central bank's injection this week totalled 690 billion yuan.

The central bank usually injects extra money before the Lunar New Year holiday.

The U.S. Commerce Department released gross domestic product data on Friday. The U.S. preliminary gross domestic product increased by 0.7% in the fourth quarter, missing expectations for a 0.8% gain, after a 2.0% rise in the third quarter.

The slower rise was mainly driven by a slower rise in consumer spending.

Consumer spending grew 2.2% in the fourth quarter, after a 3.0% increase in the third quarter.

Exports declined 2.5% in fourth quarter as a strong U.S. dollar weighed on exports, while imports increased 1.1%.

In 2015 as whole, the U.S. economy expanded 2.4%, after a 2.4% growth in 2014.

The personal consumption expenditures (PCE) price index rose 0.1% in the fourth quarter, missing expectations for a 0.7% gain, after a 1.3% increase in the third quarter.

The personal consumption expenditures (PCE) price index excluding food and energy increased 1.2% in the fourth quarter, in line with forecasts, after a 1.4% gain in the third quarter.

The personal consumption expenditures (PCE) price index is the Fed's preferred measure for inflation. The Fed's inflation target is 2%.

West Texas Intermediate futures for March delivery rose to $33.89 (+2.02%), while Brent crude jumped to $35.83 (+5.83%) amid speculation that oil producers will discuss output cuts in order to support prices. However analysts say that a deal between producers is unlike and fundamentals will most probably weaken further.

Yesterday Russian officials said that Saudi Arabia had proposed oil production cuts of up to 5%. However analysts say that even if this happens it would not be enough to bring the market back to balance.

Gold is currently at $1,114.70 (-0.13%). Bullion is on track to make January its best month in a year. Recent weak data on the U.S. economy and talks of Federal Reserve's inability to raise interest rates in March supported the non-interest-paying precious metal.

Despite recent gains Barclays still forecasts gold to cost $1,075 an ounce in the first quarter and $1,054 in 2016 in general.

(raw materials / closing price /% change)

Oil 33.71 +1.48%

Gold 1,114.70 -0.08%