SINGAPORE, Dec 11 (Reuters) - Gold was trading near its
three-week high on Wednesday, boosted by short-covering by funds
against the euro.
* Spot gold ticked up 0.04 percent to $1,260.71 an
ounce by 0019 GMT, after gaining 1.6 percent in the previous
* Funds have been buying to cover short positions ahead of
the Federal Reserve's policy meeting next week. A break above
strong resistance at $1,250 an ounce also triggered heavy buy
* Budget negotiators in the U.S. Congress reached an
agreement on Tuesday that, if approved by the House and Senate,
could restore some order to the nation's chaotic budget process
and avoid another government shutdown on Jan. 15.
* During the last 16-day shutdown in October, gold lost 3.5
percent as investors shunned the metal's safe-haven appeal and
chose to hold cash instead.