Oil prices in the international market rose while gold prices retreated from its 14-month high, after the US and Mexico made an agreement that averted risks of a trade tariff war.

Global oil price benchmark, Brent crude futures, was up by 0.7 percent or 42 cents to $63.71 a barrel against Friday's close. On Friday, the commodity rallied close to 3 percent, recovering from a five-month low.

Spot gold fell by 0.7 percent to $1,330.46 per ounce on Monday. In the previous session, the bullion touched a 14-month high of $1,348.08 an ounce, its highest since 19 April, 2018.

Improved relations between the US and Mexico and no major shocks at the G20 meet over the weekend meant an aversion of a possible trade war that would hurt the global economy further. Gold losses its appeal as the safe haven metal at times of positive geopolitical developments.

The United States dropped its threats to impose tariffs on Mexico, which President Trump made in an attempt to combat illegal migration from Central America. The decision was taken after the two countries stuck in deal, wherein, Mexico agreed to rapidly expand a controversial asylum program and deploy security forces to control the flow of illegal migrants.

Positive trade relations also translate in better outlook for oil. Oil futures also gained on statements by OPEC's (Organisation of Petroleum Exporting Countries) de-facto leader Saudi Arabia on Friday said that the group was close to agreeing extended supply cuts, although more talks were still needed with non-OPEC countries

The OPEC and its allies (that includes Russia) meet twice a year to discuss their supply schedules. In their last meeting, in December 2018, it decided to cut output by 1.2 million barrels per day (bpd) from 1 January. The group will hold its next meet on 25-26 June in Vienna.

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