Gold rose around 2 percent on Monday to above $1,700 an ounce, its biggest one-day gain in three weeks, swept higher by hopes that new proposals may emerge out of Europe to tackle the region's debt crisis. Spot gold rose 1.8 percent to $1,709.44 an ounce by 3:39 pm EST (2039 GMT). US December gold futures settled up $25.10 at $1,710.80 an ounce.
Volume was about 80 percent above its 30-day average, preliminary Reuters data showed, boosted by contract rollover ahead of December's first-notice day on Wednesday. Spot silver tracked gold to rise 3.3 percent to $32.04 an ounce. Earlier in the session, gold touched a one-week high at $1,719.89 an ounce, near its 100-day moving average - a key technical support it breached early last week. Among platinum group metals, platinum rose 0.8 percent to $1,536.99 an ounce, while palladium rose 2 percent to $573.75 an ounce.