Gold falls as US impasse seen ending

London, Oct 11. Gold today fell for a second weekly losses amid expectations that US lawmakers will reach an agreement to increase the debt limit and end a government shutdown, curbing demand for a protection of wealth. Gold slipped 0.1 per cent to USD 1,286.44 an ounce, recording week's losses to 1.9 per cent since the shutdown began. Silver lost 0.8 per cent to USD 21.51 an ounce, a second week of losses. President Barack Obama didn't accept or reject a House Republicans' plan to raise the limit as the two sides pledged to keep talking. An agreement to avoid default and end the shutdown would put the world's largest economy back on track for recovery and potentially pave the way for the Federal Reserve to reduce stimulus. Gold has slumped 23 per cent this year on speculation that the Fed may cut asset purchases. Holdings in the SPDR Gold Trust, the biggest bullion-backed exchange-traded product fell to 896.38 tons yesterday, the least since February 2009.