(Kitco News) – Comex gold futures prices ended the U.S. day session solidly lower, hit a three-week low and closed below the key $1,300.00 level. Bearish technical postures for both gold and silver incited more chart-based selling pressure Tuesday. Also, Atlanta Fed president Dennis Lockhart on Tuesday said the Fed could start to taper its monthly bond-buying program at some point yet this year. A sharp decline in the U.S. trade deficit in June also was also a bearish factor for the precious metals, as it suggested a pick-up in U.S. economic conditions. December gold was last down $19.80 at $1,282.60 an ounce. Spot gold was last quoted down $15.00 at $1,289.50. September Comex silver last traded down $0.195 at $19.525 an ounce.
In overnight news, there was more upbeat economic data coming out of the European Union Tuesday. Germany’s manufactured goods orders increased by 3.8% in June versus May. However, European stock markets languished in quiet, summertime trading. Asian stock markets were mostly weaker in dull trading as the world market place awaits fresh macro inputs. The Reserve Bank of Australia cut its main interest rate by 0.25%, to a record low of 2.5% on Tuesday.
With many Europeans and North Americans on summer vacations and with the “dog days” of summer on the doorstep, trading volumes in many markets may dwindle until after the U.S. Labor Day holiday in early September.