Oil rose to one-week high after the Energy Department reported that crude oil inventories unexpectedly fell, and as stocks gained amid increasing optimism that the U.S. economy is accelerating.

Futures rose after the Department said that oil stocks fell 2.05 million barrels to 373.1 million level last week. This value has surprised many economists, as they had expected growth of 1.8 million barrels. Shares rose amid better-than-expected economic reports, as well as after the manufacturing Institute for Supply Management index reached a five-month high in October.

Note also that oil production in the U.S. rose for the eighth week to 6.67 million barrels a day, which is the maximum in January 1995. At the same time, oil imports fell 10% to 7.92 million barrels a day.

Gasoline inventories rose by 935,000 barrels to 199.5 million level million, compared to expectations at around 850,000 barrels. Distillate stocks fell by 93,000 barrels to 117.9 million, versus the expected decline of 1.4 million barrels

Also, data released today showed that confidence among U.S. consumers rose in October to four-year high, and reached the level of 72.2. Recall that in September the figure was 68.4 points.

Crude oil futures also rose after China said that the purchasing managers' index rose to 50.2 in October from 49.8 in September, while showing the first increase in four months.

December futures price of U.S. light crude oil WTI (Light Sweet Crude Oil) rose to 87.06 dollars a barrel on the New York Mercantile Exchange.

December futures price for North Sea petroleum mix of mark Brent fell 19 cents to 108.27 dollars a barrel on the London Stock Exchange ICE Futures Europe.

During the day, the price of gold showed a significant increase, due to the growth in the stock markets and an increase in appetite for riskier assets, but prices have dropped after the published data from the U.S. showed that the number of initial claims for unemployment insurance declined.

At the same time, many investors are now awaiting data on employment in the non-agricultural sector of the U.S., which will be presented tomorrow.

Analysts predict that the economy added 125,000 jobs last month and the unemployment rate rose to 7.9% from 7.8%.

Note that the U.S. stock indexes rose at the open, while European shares were supported by a report from the Royal Dutch Shell (RDSa.L).

Also today, the rise in gold prices was caused by the data from China, which showed that the PMI index of manufacturing activity rose to 50.2 from 49.8 in September, indicating expansion in the sector.

Technical analysis showed that the spot price of gold may rise in the near future to reach $ 1736 an ounce, as evidenced by the analysis of the channel and Fibonacci analysis.

Also note that support is now at $ 1693 and $ 1661.

The physical market traders in India have taken a wait and expect further price correction to buy. Rates to rise in prices due to the fact that Indian demand will grow this month amid the peak festival season.

Note also that the Russian gold mining companies, gold production increased by 3.1% in the first nine months of 2012 compared to the same period last year.

December futures price of gold on COMEX today rose to 1717.80 dollars per ounce.

Change % Change Last

Oil $86.18 -0.06 -0.07%

Gold $1,721.50 +2.40 +0.14%