Gold futures rebounded from the lowest in almost four weeks after mounting debt woes in the U.S. and Europe spurred demand for the metal as a store of value.

A U.S. congressional committee failed to reach agreement on reducing the budget deficit. Global equities have tumbled this month as Europe’s credit crisis escalated. Holdings in exchange- traded products backed by gold climbed to a record yesterday.

Gold futures for December delivery gained to $1,705.60 an ounce on the Comex in New York. Yesterday, the metal touched $1,667.10, the lowest since Oct. 25.