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.

Crude fluctuated after rising to the highest level in more than two months as Senate Majority Leader Harry Reid said lawmakers and President Barack Obama are unlikely to reach a deal to avert a fiscal crisis.

Prices erased gains amid few signs of an agreement to prevent $600 billion in automatic U.S. tax increases and spending cuts set to begin Jan. 1, known collectively as the fiscal cliff. Earlier, futures advanced as jobless claims fell.

Crude oil for February delivery slipped $90.51 a barrel on the New York Mercantile Exchange after rising to $91.44, the highest intraday level since Oct. 19. Trading volume for West Texas Intermediate futures contracts was down 43 percent from the 100-day average.

Brent oil for February settlement slid 60 cents, or 0.5 percent, to $110.47 a barrel on the London-based ICE Futures Europe. The number of contracts trading was 54 percent lower than the 100-day average. The European benchmark crude was at a premium of $19.65 to WTI.

Change % Change Last

Oil$91.14+0.16+0.18%

Gold$1,660.50-0.20-0.01%

05:00 Japan Annualized Housing Starts, blnNovember 0.9780.911

07:00 United Kingdom Nationwide house price indexDecember 0.0%+0.1%

07:00 United Kingdom Nationwide house price index, y/yDecember -1.2%

07:00 Switzerland UBS Consumption IndicatorNovember 1.31

09:30 United Kingdom BBA Mortgage ApprovalsNovember 33.034.6

13:30 U.S. Initial Jobless Claims- 361365

15:00 U.S. Consumer confidenceDecember 73.770.3

15:00 U.S. New Home SalesNovember 368382

23:15 Japan Manufacturing PMIDecember 46.5

23:30 Japan Household spending Y/YNovember -0.1%+0.8%

23:30 Japan National Consumer Price Index, y/yNovember -0.4%+0.2%

23:30 Japan National CPI Ex-Fresh Food, y/yNovember 0.0%-0.1%

23:30 Japan Tokyo Consumer Price Index, y/yDecember -0.5%-0.6%

23:30 Japan Tokyo CPI ex Fresh Food, y/yDecember -0.5%-0.5%

23:30 Japan Unemployment RateNovember 4.2%4.2%

23:50 Japan Industrial Production (MoM) (preliminary)November +1.6%-0.5%

23:50 Japan Industrial Production (YoY)(preliminary)November -4.5%-4.6%

23:50 Japan Retail sales, y/yNovember -1.2%+1.2%