PRECIOUS-Gold rises 1 pct on US debt ceiling crisis, S&P down
* Gold, Treasuries gain while U.S. equities fall
* Markets turn focus to debt-ceiling deadline on Oct 17
* U.S. Comex futures volume thin despite Monday's rally
(Adds comment, second dateline, byline, updates market activity) NEW YORK/LONDON, Oct 7 (Reuters) - Gold rose 1 percent on Monday, as a lack of progress among U.S. lawmakers to resolve a government shutdown and raise the U.S. debt ceiling weighed on the equities market, bolstering bullion's safe-haven appeal. The White House on Monday reiterated that President Barack Obama would not negotiate with Republicans over the threat of a debt default, as stock prices fell and a U.S. government shutdown neared its second week. Other safe-haven such as U.S. Treasuries prices were higher. Even though responses from gold and other financial markets have so far been mild to the deadlock in Washington, analysts said that bullion should benefit from the huge uncertainty related to a possible U.S. default if Congress fails to raise the U.S. debt limit by Oct. 17. "The longer the shutdown, the longer the issue of debt ceiling crisis, gold will likely be increasingly supported," said Carlos Sanchez, director of commodities and asset management at CPM Group. During the last debate over the U.S. debt ceiling, in 2011, gold hit an all-time high of $1,920 an ounce. Congress reached an agreement only at the last minute. Spot gold was up 1 percent at $1,323.70 an ounce, having earlier reached its highest since Oct. 1 at $1,327.94. U.S. gold futures for December were up $14.40 an ounce at $1,324.30. Despite Monday's rally, preliminary Reuters data showed Comex gold futures trading volume was on track to finish below its 30-day average, underscoring a lack of commitment among bullion investors, traders said. In other precious metals, silver was up 3 percent at $22.31, having earlier hit a two-week high at $22.44. Platinum gained 0.9 percent to $1,393.50 an ounce after a 1.3 percent increase on Friday, as mine strikes and curbs in top platinum producer South Africa threatened to hurt supply. Palladium rose 0.6 percent to $700.94 an ounce.
Prices at 12:48 p.m. EDT (1648 GMT)
LAST NET PCT YTD CHG CHG CHG US gold 1324.30 14.40 1.1% -21.0% US silver 22.350 0.006 2.8% -26.1% US platinum 1395.90 11.20 0.8% -9.3% US palladium 703.15 1.20 0.2% 0.0% Gold 1323.70 13.09 1.0% -20.9% Silver 22.31 0.66 3.0% -26.4% Platinum 1393.50 12.90 0.9% -9.4% Palladium 700.93 3.93 0.6% -0.2% Gold Fix 1323.50 12.50 1.0% -20.5% Silver Fix 21.77 12.00 0.6% -27.3% Platinum Fix 1386.00 1.00 0.1% -9.0% Palladium Fix 697.00 0.00 0.0% -0.3%
(Additional reporting by A. Ananthalakshmi in; Singapore; Editing by Keiron Henderson, Dale Hudson and Nick Zieminski)