Investing.com - Gold futures rose to a one-week high on Monday, as growing concerns over a possible U.S. government shutdown boosted the safe haven appeal of the precious metal. On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,342.50 a troy ounce during European morning hours, up 0.25%. Gold prices rose by as much as 0.8% earlier in the session to hit a daily high of USD1,350.30 a troy ounce, the strongest level since September 20. The December contract ended 1.15% higher on Friday to settle at USD1,339.20 a troy ounce. Gold futures were likely to find support at USD1,306.20 a troy ounce, the low from September 24 and resistance at USD1,366.50, the high from September 20. Appetite for safe-haven assets was boosted amid concerns that political wrangling in Washington could lead to a government shutdown and create a drag on fourth quarter economic growth. Congress must pass a short-term budget by midnight on Monday in order to avoid the first government shutdown in 17 years. Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare. Later this month, Congress will have to extend the U.S. debt ceiling which the U.S. Treasury Department has estimated will be reached by October 17. Moody's Investors Service warned that a failure to raise the debt limit would result in a worse outcome for financial markets than a government shutdown. Hopes of continued stimulus from the Federal Reserve also boosted sentiment on the precious metal. Chicago Federal Reserve Bank President Charles Evans said on Friday that there is a chance the central bank will not begin to taper its bond-buying program until early 2014. Gold’s gains were limited as the U.S. dollar strengthened against the euro, amid renewed concerns over political instability in Italy The euro came under pressure after Silvio Berlusconi announced Saturday that he was pulling his ministers out of Prime Minister Enrico Letta’s coalition government and called for fresh elections to be held. Elsewhere on the Comex, silver for December delivery inched up 0.1% to trade at USD21.85 a troy ounce, while copper for December delivery added 0.2% to trade at USD3.337 a pound. Data released earlier in the day showed that China’s final HSBC Purchasing Managers Index came in at 50.2 in September, down from a preliminary reading of 51.2, but still higher than 50.1 in August. China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

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