Oil prices extended gains on Friday, scaling three-month highs as the United States and China moved closer to a resolution to the 18-month trade war between the world's two biggest economies that has raised big questions about global demand for crude. Brent futures (LCOc1) climbed 48 cents, or 0.8%, to $64.68 a barrel, its highest since Sept. 23. West Texas Intermediate (WTI) crude (CLc1) was up 36 cents, or 0.6%, to $59.54 a barrel, the highest since Sept. 16. While a trade deal that would end uncertainty could provide a shot in the arm for oil demand in the near term, concerns continue to hover about the demand profile amid ample supplies going forward. In the meantime the White House has agreed to suspend some tariffs on Chinese goods and reduce others in return for Beijing's pledge to hike purchases of U.S. farm products in 2020, sources said on Thursday.An International Energy Agency report on Thursday pointed to future pressure on oil prices, predicting a sharp rise in global inventories despite an agreement by the Organization of the Petroleum Exporting Countries (OPEC) and its allies to deepen output cuts.

Gold prices fell on Friday after sources said Washington and Beijing had reached an interim trade deal and averted a fresh round of U.S. tariffs, boosting appetite for riskier assets. Spot gold as down 0.2% at $1,466.35 per ounce, but was on track to post a weekly gain. In the previous session, gold prices hit their highest in over a month, driven by trade uncertainties ahead of a Dec. 15 deadline, when U.S. tariffs on Chinese goods were initially expected to kick in. U.S. gold futures were also down 0.2% at $1,469.60. Asian markets also jumped on reports that Prime Minister Boris Johnson's Conservative Party looked to have won a clear majority in UK elections. World stocks hit a record high on Thursday, passing an all-time peak set in early 2018, on respite over a prolonged trade war. silver dipped 0.1% to $16.90 per ounce, but was headed for its best week since late October, gaining over 2%, while platinum fell 0.1% to $942.68, but was set to post its best week since late August, rising 5.1%.

The Chinese yuan rose in offshore trade and the Japanese yen fell after a source told Reuters that the United States and China have agreed some tariff reductions and a delay on tariffs set to go effect on Dec. 15. The early results suggest the election will relieve almost four years of uncertainty about when Brexit would take place, which should be supportive of the pound. The pound plunged more than 10% in the immediate aftermath of Britain's vote to leave the European Union in June 2016, while $2 trillion was wiped off world markets.The exit poll, which suggested UK Prime Minister Boris Johnson would get a majority of 86 - the largest of any Conservative leader since Margaret Thatcher won in the 1980s - should empower him to deliver Brexit on Jan. 31. The dollar index (DXY) against a basket of six major currencies fell 0.35% to 96.736, approaching the lowest since July this year.

Most of the oils either ruled firm or traded higher at the mandis in Indore on strong global cues and foreign support, with soya refined quoted at Rs.855 for 10 kg, while soya solvent ruled at Rs.810. Palm oil (Indore) was quoted at Rs.855 for 10 kg. Cotton oil (Gujarat) quoted at Rs.700, while groundnut oil (Indore) ruled at Rs.1,060-1,080 for 10 kg. Mustard seeds ruled at Rs.3,750-3,800, while raida was quoted at Rs.3,850-3,900. Soyabean ruled at Rs.3,975-4,025 a quintal.