* Uncertainty over US budge talk, euro zone debt crisis
* Investors eye Fed policy meeting on Dec 11-12 for
* Paulson & Co had mixed Nov. performance, cites weaker gold
* Coming up: U.S. international trade, wholesale data
(Adds market details, updates prices)
By Frank Tang
NEW YORK, Dec 10 Gold rose for a third session
on Monday as investors were uncertain about the U.S. budget
crisis and hopeful that the Federal Reserve will unveil new
economic stimulus this week.
Growing unease about Europe boosted safe-haven bids for
bullion after Italian Prime Minister Mario Monti announced he
would resign once the 2013 budget is approved.
Investors also bought more gold ahead of a two-day Fed
policy meeting. The U.S. central bank is expected to announce
monthly bond purchases of $45 billion, on top of the $40 billion
in mortgage-backed security purchases it announced in September.
Also underpinning gold was a lack of apparent progress in
U.S. budget talks. U .S. President Barack Obama d id not provide
additional details after the White House and Re publican House
Speaker John Boehner's office held more negotiations on Monday
in a bid to break the "fiscal cliff" stalemate.
Analysts said safe havens such as gold and silver could sell
off in the near term if a budget deal is clinched.
"Although markets are taking the lack of progress thus far
with an impressive degree of complacency, we wonder when a
potential breaking point will be reached," said Edward Meir,
metals analyst at brokerage INTL FCStone. "As a result, we would
be cautious on gold and silver here."
Spot gold rose 0. 4 percent to $1,71 1 . 4 0 an ounce by
2 : 5 9 p . m. EST (19 59 GMT), r ebounding from a one-month low hit on
Friday after data showed U.S. employers hired more workers than
expected in November.
Gold has gained almost 2 percent in the last three sessions,
as Friday's e ncouraging U.S. payrolls data did not change a view
that the Fed would continue to use monetary stimulus to boost
the ailing economy, lifting gold's inflation-hedge appeal.
U.S. gold futures for February delivery settled up
$8.90 a t $1,714.40 an ounce, w ith t rading volume v ery light at
about 55 percent b elow its 30-day average, preliminary Reuters
PAULSON & CO HAD MIXED NOVEMBER
The gold market largely ignored news that high-profile hedge
fund manager John Paulson told his clients on Friday evening
that his funds experienced mixed returns in November with softer
gold prices weighing on some portfolios.
Late Friday's CFTC data also showed hedge fund and money
managers cut their bullish bets on U.S. gold last week to the
lowest level since late August.
O ther precious metals with a stronger industrial demand
component outperformed gold, as China's data showed the
country's industrial output and retail sales rose in November at
their fastest annual pace in eight months, even though its
exports growth slowed sharply.
S ilver was up 0. 6 percent at $33. 19 an ounce.
Platinum climbed 1.3 percent to $1,61 6. 50, while
palladium gained 0. 6 p ercent to $697.
2:59 PM EST LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold FEB 1714.40 8.90 0.5 1703.30 1718.80 76,246
US Silver MAR 33.377 0.246 0.7 33.090 33.495 22,474
US Plat JAN 1623.30 16.30 1.0 1607.70 1629.20 9,381
US Pall MAR 704.75 6.75 1.0 695.25 706.00 3,777
Gold 1711.40 7.36 0.4 1703.33 1717.20
Silver 33.190 0.200 0.6 33.080 33.400
Platinum 1616.50 21.50 1.3 1609.20 1625.00
Palladium 697.00 4.00 0.6 697.00 702.50
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 79,160 186,657 174,718 13.72 0.34
US Silver 23,791 59,215 52,736 20.3 -1.36
US Platinum 11,238 8,432 8,819 16.81 0.38
US Palladium 3,787 6,073 4,758
(Additional reporting by David Brough in London)