Gold prices eased on Tuesday, weighed down by hopes that the US budget crisis can be averted and ahead of a key Federal Reserve policy statement regarding its monetary outlook. Bullion snapped a three-day winning streak, as safe-haven bids dried up after US House of Representatives Speaker John Boehner said he remained hopeful that an agreement by the end-of-year deadline.

Spot gold was down 0.2 percent at $1,707.70 an ounce by 2:16 pm EST (1916 GMT). US COMEX gold futures for February delivery settled down $4.80 at $1,709.60 an ounce, with volume at 60 percent below its 30-day average, preliminary Reuters data showed. Among platinum group metals, platinum rose 0.9 percent to $1,632.30, while palladium was down 0.9 percent at $690.20, after it has risen around 15 percent in the last month, outstripping gains in other precious metals.

Copyright Reuters, 2012