West Texas Intermediate headed for the first weekly gain in more than a month as U.S. economic growth beat estimates, boosting the outlook for demand in the world’s largest oil consumer. Oil prices strengthened after preliminary data showed that U.S. gross domestic product expanded by 4.2% in the second quarter, beating expectations for growth of 3.9%, after an expansion of 4.0% in the three months to April.
Escalating tensions in eastern Ukraine fueled safe-haven demand for gold on Thursday, offsetting upbeat U.S. data that would have otherwise pushed the precious metal lower. A top Ukrainian military official was reported as saying earlier that a "full-scale invasion" was taking place in the country, while separate reports that up to 1,000 Russian troops were in Ukraine to assist pro-Russian rebels boosted the price of gold, a popular safe-haven asset class during times of geopolitical uncertainty. Elsewhere, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending Aug. 22 declined by 1,000 to 298,000 from the previous week’s revised total of 299,000.
