Monday's upward drive of tradables on the commodity complex pulled up gold futures as the yellowish metal also benefited from increased demand as a result of fighting in the Middle East, according to Bloomberg.
Bullion also benefited from speculation indicating an air of optimism is following political leaders in the U.S. amid negotiations for the fiscal cliff. Defense Minister Ehud Barak of Israel said the military was set to launch an invasion of the Gaza Strip as part of an effort to rein in Palestinian militants firing rockets toward Tel Aviv, Jerusalem and elsewhere in Israel.
"People are in a risk-on mode today as they expect Washington to come up with a solution," senior marketing strategist Adam Klopfenstein with Archer Financial Services Inc. in Chicago told the news service. "The situation in the Middle East is also putting some bid under gold."
At 12:02 p.m. on Monday, gold futures gained 1.18 percent, a $20.14 lift to $1,733.89 per troy ounce.
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