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For years that negativity had been softening because of high oil prices and relatively high economic growth, but know it’s gone.

Is this sentence grammatically correct? Does the choice of past perfect continuous optimal?

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If you're speaking of a process which lasted into the approximate present, which "now it is gone" implies, then you should use a present perfect. A past perfect must be anchored in a past time before which the eventuality it mentions occurs.

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"For years that negativity had been softening because of high oil prices and relatively high economic growth, and now it was gone."

OR

"For years that negativity has been softening because of high oil prices and relatively high economic growth, and now it's gone."

Make sure the tenses in each clause match.

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