Oil rose for the first time in four days as the U.S. economy expanded more than previously estimated and on optimism that President Barack Obama will reach an agreement with Congress over a new budget.

Prices gained as much as 2.5 percent as gross domestic product grew at a 2.7 percent annual rate in the third quarter, up from a prior estimate of 2 percent, figures from the Commerce Department showed. Three out of four global investors expect a short-term agreement to avert more than $600 billion in U.S. spending cuts and tax increases, known as the fiscal cliff.

The U.S. economy expanded as a narrower trade deficit and gains in inventory overshadowed a smaller increase in consumer spending. The median forecast of 82 economists surveyed called for 2.8 percent growth in third-quarter GDP, the value of all goods and services produced. The economy grew 1.3 percent in the second quarter.

Oil also rose after other reports showed fewer Americans filed first-time claims for unemployment insurance payments last week and Americans signed more contracts in October to purchase previously owned homes.

Applications for jobless benefits decreased by 23,000 to 393,000 in the week ended Nov. 24, according to the Labor Department. The index of pending home resales climbed 5.2 percent in October, exceeding the highest estimate in a survey of economists, figures from the National Association of Realtors showed.

The U.S., the world’s biggest oil consumer, used 18.8 million barrels a day in 2011, or 21 percent of the global total, according to BP Plc (BP/)’s Statistical Review of World Energy.

Crude for January delivery climbed to $88.69 a barrel on the New York Mercantile Exchange. Prices are up 2.5 percent this month.

Brent for January settlement rose $1.54, or 1.4 percent, to $111.05 a barrel on the London-based ICE Futures Europe exchange.

Gold prices are rising after the strongest in four weeks before the decline, as investors are nervous as we approach the deadline for an agreement that would allow the U.S. to prevent a financial crisis in the next year.

Speaker of the U.S. House Republican John Boehner on Wednesday reported a possible compromise in the negotiations on the "fiscal cliff." President Barack Obama said he expects to negotiate with Congress before Christmas.

The dollar fell after the U.S. Department of Commerce today announced that in the 3rd quarter GDP registered a growth rate of 2.7% vs. 2.8% and 2.0% in the previous quarter.

Also today it was announced that the number of Americans last week, first applied for unemployment benefits fell by 17 thousand to 393 thousand compared to forecasts of 390 million and 410 thousand in the previous period. The number of repeat calls registered a decrease of 50 thousand to 3.2878 million against 3.337 million the previous week.

In October, pending transactions in the U.S. housing market dynamics recorded at +5.2% m / m and 13.2% against the forecast of 0.8% and 0.4% / 14.5% in September.

Stocks of the world's largest exchange-traded fund backed by gold ETF SPDR Gold Trust for a second day reached a record, rising to 1.347,018 tons.

December futures price of gold on COMEX today rose to 1728.10 dollars per ounce.

Change % Change Last

Oil $86.67 +0.18 +0.21%

Gold $1,718.70 +2.20 +0.13%