Gold Falls to $1,256.91 an Ounce Following Budget Deal

Gold prices were down on Wednesday following the announcement on Tuesday that the U.S. Congress struck a tentative bipartisan budget deal, Reuters reported.

Spot gold prices fell $3.77 to $1,256.91 an ounce. Prices hit their highest in three weeks yesterday. Gold futures for February delivery also declined today, dropping $5.10 to $1,256 an ounce.

The tentative budget deal should avoid another U.S. government shutdown like the one in October, Kitco News reported. It also makes the market place more stable, encouraging the Federal Reserve to begin tapering its stimulus.