Gold inched up on Monday as a drop in the US unemployment rate did little to dampen expectations that the Federal Reserve will maintain easy monetary policy when it meets later this week. Investors are watching progress in the US fiscal talks and potential political uproar in Italy, which could jolt the market where liquidity is starting to thin as traders close books before the end of the year.

Spot gold edged up 0.2 percent to $1,707.80 an ounce by 0750 GMT, standing above the 100-day moving average at $1,702.64. US gold was also up 0.2 percent, to $1,709. Spot platinum hit a more than one-week high of $1,612.50, and spot palladium was little changed at $692.60, close to a near three-month high of $698.50 hit in the previous session.

Copyright Reuters, 2012