Crude oil prices rose as Iraq delayed an auction of oil field development rights while officials from OPEC-led producers (notably including Russia) prepared for a meeting that may bring an extension of coordinated production cuts into 2019.

EIA inventory flow statistics amplified gains, showing stockpiles shed 1.07 million barrels last week. Economists were expecting a shallow build of 393.6k barrels, though a closely followed private-sector estimate from API published Tuesday foreshadowed the large outflow.

Gold prices probed higher as the crude oil surge echoed as strength across the raw-materials space. Indeed, the benchmark Bloomberg Commodity Index posted its largest one-day gain in eight months. A second day of US Dollar gains undercut momentum however, leaving the metal little-changed for the day.

OPEC MEETING, MONTHLY API REPORT AHEAD

From here, traders are eyeing a meeting of OPEC's Joint Technical Committee. Soundbites from the gathering will parsed for clues about a possible extension of output curbs that may emerge from the follow-on ministers' meeting on Friday.

The APImonthly statistical report is also due. That may help inform speculation about the extent to which swelling US supply will swamp cartel-led efforts. Output hit a record 10.5 million barrels per day last week and data from Baker Hughes put the number of active rigs at the highest in three years.

On the sentiment front,  are pointing cautiously higher ahead of the opening bell on Wall Street. If momentum carries through, the risk-on mood may translate into higher bond yields and weigh on non-interest-bearing gold prices.

GOLD TECHNICAL ANALYSIS

Gold prices are still struggling to find direction below resistance in the 1353.87-57.50 area (double top, falling trend line). A break above this barrier confirmed on a daily closing basis exposes July 2016 high at 1375.15. Alternatively, a reversal below near-term rising trend support – now at 1339.64 – opens the door for a challenge of range support at 1307.25.