Investing.com – Gold prices eased from highs as safe-haven demand fell following news that Senators may be near an agreement to end the government shutdown.
Gold futures for February delivery on the Comex division of the New York Mercantile Exchange fell by $1, or 0.08%, to $1,332 a troy ounce.
The third day of the US government shutdown was reportedly nearing an end after Senator Minority leader Chuck Schumer said Democrats will vote on a bill to re-open the government to continue negotiating a global agreement.
The Senate voted to advance the bill 81-18 and is expected to send it back to the House of Representatives for a vote. The bill would provide funding to keep the government open through Feb. 8.
Also weighing on gold prices was a continued rise in Treasury yields as the United States 10-Year rose to a nearly three-and-half-year high amid growing investor optimism on the outlook of inflation and economic growth.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
Sentiment for gold remains bullish, however, as data showed traders continued to increase their bullish bets on gold for the fifth week in a row.
The most recent Commitment of Traders (CoT) report showed money managers increased their speculative gross long positions in Comex gold futures by 11,258 contracts to 227,373.
In other precious metal trade, silver futures fell 0.21% to $17.00 a troy ounce, while platinum futures fell 2.06% to $999.10.
Copper rose 0.42% to $3.20, while natural gas rose 1.82% to $3.24.