Gold exchange traded funds fell Tuesday after President Barack Obama said he supports a plan that would reduce the deficit by nearly $4 trillion as the deadline on the U.S. debt ceiling looms.

Obama at a surprise White House press conference Tuesday said the proposal by a group of senators from both parties was “broadly consistent” with his approach. He said progress was made in weekend meetings and that he endorsed the plan from a group of lawmakers known as the “Gang of Six,” reported.

SPDR Gold Trust (NYSEArca: GLD) fell on the news and was down more than 1% at last check. [Gold ETFs Add Bullion]

ETFs that invest in U.S. government bonds, meanwhile, jumped over 1% on hopes leaders in Washington will reach a compromise on the debt limit in time. The iShares Barclays 20+ Year Treasury Bond (NYSEArca: TLT) rallied 1.4%. [Treasury ETFs Volatile]

Stock ETFs also jumped on the news of an apparent breakthrough on the debt talks.

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