Gold futures rebounded after U.S. Senate Majority Leader Harry Reid said that the budget dispute probably won’t be resolved before Jan. 1, boosting demand for the metal as a haven.

Republicans won’t cooperate, said Reid, a Nevada Democrat. The impasse leaves the U.S. closer to more than $600 billion in automatic tax increases and spending cuts set to begin in 2013. Earlier, gold fell as much as 0.5 percent.

Gold futures for February delivery gained to $1,666.10 an ounce on the Comex in New York. Through yesterday, the metal gained 6 percent this year, heading for a 12th straight annual increase, as central banks from the U.S. to China announced stimulus measures to bolster their economies.