Gold rises 0.5%; oil settles above $94

San Francisco (Aug 28)  Gold futures rose to the highest in in more than a week as escalating tension in Ukraine spurred haven demand. Silver advanced.

Gold futures for December delivery rose 0.5 percent to settle at $1,290.40 on the Comex in New York, after touching $1,297.60, the highest for a most-active contract since Aug. 20.

Ukrainian President Petro Poroshenko pledged to step up the country’s defenses against what he earlier called a “de facto” Russian incursion after separatists gained ground in eastern regions.

The U.S. said Russia may be directing the attacks, and France and Germany threatened President Vladimir Putin’s government with further sanctions.

Silver futures for December delivery rose 0.7 percent to $19.609 an ounce on the Comex.

Platinum futures for October delivery gained 0.4 percent to $1,425.20 an ounce. Palladium futures for December delivery added 0.4 percent to $898.10 an ounce. Prices are heading for a seventh straight monthly advance, the longest stretch since January 2011.

In energy markets, West Texas Intermediate crude gained for a third day as the U.S. economy expanded more than previously forecast in the second quarter, boosting expectations for strong oil demand.

WTI for October delivery rose 67 cents to settle at $94.55 on the New York Mercantile Exchange.

U.S. gross domestic product rose at a 4.2 percent annualized rate last quarter, up from an initial estimate of 4 percent, the Commerce Department said. Demand for gasoline rose 3.7 percent last week, the Energy Information Administration said yesterday


Source: ProactivInvestors