Gold rose for a third session on Monday as investors were uncertain about the US 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.

Analysts said safe havens such as gold and silver could sell off in the near term if a budget deal is clinched. Spot gold rose 0.4 percent to $1,711.40 an ounce by 2:59 pm. EST (1959 GMT), rebounding from a one-month low hit on Friday after data showed US employers hired more workers than expected in November.

US gold futures for February delivery settled up $8.90 a t $1,714.40 an ounce, with trading volume very light at about 55 percent below its 30-day average, preliminary Reuters data showed. Silver was up 0.6 percent at $33.19 an ounce. Platinum climbed 1.3 percent to $1,616.50, while palladium gained 0.6 percent to $697.

Copyright Reuters, 2012