Gold prices rose for a fourth straight day on Thursday for their longest winning stretch in nearly two months, but the gains were small for a market seen as a key hedge to the US fiscal crisis, dealers said. Bullion prices have crept up since Dec. 21, though they have gained no more than 1 percent in all as America heads for another possible recession from punitive tax hikes and spending cuts scheduled to start as early as next week.

Gold's February futures contract on COMEX, the most active on the New York exchange, settled at $1,663.70 an ounce, up $3, or 0.2 percent on the day. Over the past week, it has gained $17.80, or just over 1 percent, after hitting a four-month low of $1,645.90 on Dec. 20.

The spot price of bullion, which trades through the day, hovered at around $1,664 an ounce, up about $5 or 0.3 percent from Wednesday's late afternoon levels. Since last Thursday, the spot price has gained $17 or 1 percent. Gold prices barely budged on news that the US Congress will hold a work session on Sunday beginning at 6:30 p.m. EST (2330 GMT), a day before the Dec. 31 deadline for the fiscal cliff, to try and reach a deal. In other precious metals, silver was up 0.7 percent to $30.18 an ounce, platinum eased 0.1 percent to $1,531.24 and palladium rose 2.2 percent to $704.97.

Copyright Reuters, 2012