Gold remains below $1,300

Gold futures on the COMEX division of the New York Mercantile Exchange remained close below 1,300 U.S. dollars on Tuesday as U.S. stocks advanced on upbeat housing data.

The most active gold contract for December delivery fell 2.6 dollars, or 0.2 percent, to settle at 1296.7 dollars per ounce.

Gold prices hovered around the 1,300 dollars on Tuesday, but settled below the key level as investors were busy pushing the Nasdaq Composite Index to an over 14-year high.

On the economic front, the U.S. Department of Commerce reported that U.S. housing starts jumped to a seasonally adjusted annual rate of 1.093 million units in July from 0.945 million units the prior month, the highest level of construction in seven months. The figures released Tuesday reverse a two-month decline in groundbreakings on new homes, much better than market expected.

Moreover, U.S. consumer price inflation in July, released by the U.S. Labor Department, was modest but it still appears to be creeping upward.

Silver for September delivery fell 22.3 cents, or 1.14 percent, to close at 19.412 dollars per ounce. Platinum for October delivery lost 6.7 dollars, or 0.46 percent, to close at 1,439.5 dollars per ounce.