Meanwhile, Bart Melek, head of commodity strategy for TD Securities, looks for gold to track other risk assets during the debate, meaning it would likely fall on a stand-off if markets like equities did likewise.

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Despite positive fundamentals, gold speculators sought liquidity and other safe havens as concerns of contagion risk spread to France and Italy, said TD Securities.

FORBES: FOCUS: Falling Prices Push Speculators To Cut Bullish Metals Positions -CFTC

Bart Melek, vice president and director, head of commodity strategy, rates and foreign exchange research at TD Securities, said just chatter from Iran and Israel could push the risk premium on crude higher.

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