Gold edged higher on Wednesday as thin post-Christmas trading and anticipation that a US budget deal might be done before the end of the year supported bullion prices. In gold futures, the benchmark February contract on New York's COMEX settled up $1.20 at $1,660.70 an ounce after a session high at $1,668.70. Bullion's spot price hovered near $1,660, versus late Monday's level of around $1,658.

The actively traded gold contract for February delivery on the Multi Commodity Exchange (MCX) was 0.48 percent lower at 30,705 rupees ($560) per 10 grams as of 0951 GMT.

Copyright Reuters, 2012