1st LD Writethru: Gold up after Paris attacks

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Monday as terror attacks in Paris triggered investor flight to the precious metal as a safe haven.

The most active gold contract for December delivery rose 2.7 U.S. dollars, or 0.25 percent, to settle at 1,083.60 dollars per ounce.

Gold rose sharply at the market open on Monday as investors rapidly purchased the precious metal on reaction to Friday's Paris terrorist attacks. Analysts note that European and Japanese equities both fell on Monday in a sign that the market was taking the attacks very seriously.

Additionally, a report released by the U.S. Federal Reserve showed the Empire State Index coming in worse-than-expected, giving additional support to the precious metal.The index fell to negative 10.74 in November.

Analysts note that unfilled orders were at negative 18.18, which was the lowest reading of the year.

Despite the sharp rise at the market's open on Monday, gold only scored a 0.25-percent rise. Analysts attributed this cap to the potential for the expected rate hike increase in December.

Expectations were originally for a delay in the rate hike until 2016 but the Fed policy meeting in late October left the door open for the central back to raise rates before the end of 2015.

An increase in the Fed's interest rate drives investors away from gold and towards assets with a return, as the precious metal bears no interest.

The CMEGroup's Fedwatch tool shows the current implied probability for a December rate hike is 68 percent. The Fed has not hiked its benchmark rate in nearly 10 years, and it has been near zero since the 2008 financial crisis.

The increased support to gold was also capped by a rise in the U.S. Dollar Index.

Silver for December delivery added 1.8 cents, or 0.13 percent, to close at 14.222 dollars per ounce. Platinum for January delivery rose 1.8 dollars, or 0.21 percent, to close at 865.50 dollars per ounce. Endit