Gold fluctuated on Tuesday trading session amid speculation that a deadlock over the new U.S. federal debt ceiling may come to an end as President Barack Obama and House Republicans signalled a possible deal. Bullion for delivery in October fell 0.5% to $1,266.40 an ounce after it rose 0.3% and was traded at $1,272.65 as of 12:20 p.m. Singapore time.