West Texas Intermediate climbed to a one-week high as fewer Americans filed claims for unemployment benefits last week and consumer spending rebounded in May.

Prices gained for a fourth day as jobless claims decreased to 346,000 from a revised 355,000 the prior period, the Labor Department reported. Household purchases, which account for about 70 percent of the economy, rose 0.3 percent last month, the Commerce Department said.

The four-week moving average of jobless claims, a less-volatile measure than the weekly figures, dropped to 345,750 last week from 348,500, according to the Labor Department.

The gains in consumer spending followed a 0.3 percent decline the prior month that was the biggest since September 2009, according to the Commerce Department.

U.S. consumer sentiment climbed last week to its highest level in more than five years. The Bloomberg Consumer Comfort Index increased to minus 28.3 in the period ended June 23, its highest level since January 2008.

More Americans signed contracts in May to buy previously owned homes than at any time in more than six years, a sign of bigger progress in the industry, figures from the National Association of Realtors showed.

WTI for August delivery rose 99 cents, or 1 percent, to $96.49 a barrel at 11:16 a.m. on the New York Mercantile Exchange. The price reached $96.54, the highest since June 20. The volume of all futures traded was 16 percent lower than the 100-day average for the time of day. Futures have declined 0.8 percent in the second quarter.

Brent for August settlement increased 90 cents, or 0.9 percent, to $102.56 a barrel on the London-based ICE Futures Europe exchange. The volume traded was 39 percent below the 100-day average.

The value of gold is kept in a range after three consecutive sessions of decline, as weak U.S. GDP returned to investors hope for continuation of the Fed's incentive program.

U.S. GDP in the first quarter rose, according to the final estimate of 1.8 percent compared to the same period of 2012, with growth forecast at 2.4 percent, reported Wednesday the Commerce Department. Markets expect that these data will influence the Fed's decision to reduce the volume of buying up bonds this year.

From the beginning, gold fell by more than 26 percent, and the second quarter could be the worst for the market since 1968, due to growth in stock price and the value of the dollar. ABN Amro Bank after other banks lowered the forecast of the price of gold at the end of 2013 to $ 1,100 an ounce from $ 1,300, and the forecast for the end of 2014 - up to $ 900 to $ 1,000.

Stocks of the world's largest exchange-traded fund backed by gold (ETF) SPDR Gold Trust fell on Tuesday to its lowest level in more than four years.

The demand in the physical markets in China and Asia, though improved from the fall in prices, but not as much as in April, when prices showed the sharpest drop in 30 years. Growth in demand in India to restrain the import duty, while in China - the fear of the credit crisis.

The cost of the August gold futures on COMEX today is trading in the range of 1223.40 - 1244.20 per ounce.

Change % Change Last

GOLD 1,229.60 -45.20 -3.55%

OIL (WTI) 95.45 0.13 0.14%