US markets close with moderate gains; Dow above 12K

The US markets rebound in a volatile session, but gains were limited as investors continued to monitor headlines from the euro zone. Dow Jones jumped 85 points, to close at 12,068.39, above the psychologically-important 12,000 mark.

Dow Jones Industrial Average advanced 0.71% or 85.15 points at 12068.39. Nasdaq Composite gained 0.34% or 9.1 points at 2695.25. Standard & Poor's 500 rose 0.63% or 7.89 points at 1261.12.

In the currency space, the euro maintains its declines versus the dollar as Italian Prime Minister Silvio Berlusconi faces a budget vote today amid pressure to quit and a surge in borrowing costs.

In commodities, crude prices gain more than 2%, Brent prices currently trading around USD 114 levels.

From precious metals space, gold gains 2% to a 1 and a half month high on technical buying as political uncertainty in Italy threatened to accelerate the euro zone's sovereign debt crisis. Gold is currently trading above USD 1790 levels.