Gold and silver opened lower Tuesday morning following positive reports on U.S. housing starts and building permits.

Spot gold was down 0.73%, having traded as high as $1,653.30 and as low as %1,640.50 to start off the day’s trading, according to Kitco market data. The London morning reference price was fixed at $1,648.50, $5.50 per ounce lower than Monday’s morning reference price.

Spot silver was showing a 1.37% loss, bid at $32.47 with an ask price of $32.57. The morning high as of time of writing was $32.59 and the low was $31.94. Monday’s reference price was set at $32.22 in the London a.m., 22 cents per ounce below Monday’s reference price.

In Europe, yields on Italian and Spanish government bonds rose as Italian Prime Minister Mario Monti opened wage and salary negotiations with Italian labor union leaders and Spain continued struggling to meet EU deficit reduction targets. Stronger-than-expected economic data, meanwhile, has been pushing U.S. and German government bond yields higher, raising the opportunity cost of holding precious metals.

Privately owned housing building permits rose a seasonally adjusted estimated annual rate of 717,000 in February, 5.1% above the revised January rate of 682,000 and 34.3% above February 2011’s level, the U.S. Census Bureau and Department of Housing and Urban Development reported. Privately owned housing starts rose at a seasonally adjusted annual rate of 698,000, 1.1% below January’s revised 706,000 but 34.7% above February 2011’s 518,000 rate.

Gold bullion prices dropped to $1,643 an ounce in London morning trading Tuesday, down 1% this week so far, according to BullionVault’s London Gold Market report.

“(Gold) support is at $1,625,” according to the latest technical analysis from bullion bank Scotia Mocatta. “A breach of this level opens up a full retracement to the $1,522 December lows.”

In U.S. stock exchange trading, gold and silver trusts were moving lower.

• The SPDR Gold Trust (NYSE:GLD) was moving lower, down nearly 0.7%.
• The iShares Gold Trust (NYSE:IAU) was down nearly 0.7%.
• The iShares Silver Trust (NYSE:SLV) was down around 1.55%.

Gold and silver mining ETFs were down sharply early Tuesday.

• The Market Vectors Gold Miners ETF (NYSE:GDX) was showing losses of between 1.4% and 1.6%.
• The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) was showing losses of around 2.25%.
• The Global X Silver Miners ETF (NYSE:SIL) was moving lower, down some 2.36%.

Gold mining shares were lower, Kinross Gold (NYSE:KGC) the exception.

• Agnico-Eagle Mines (NYSE:AEM) was showing losses of around 1.55%.
• Barrick Gold (NYSE:ABX) was down around 1.6%.
• Eldorado Gold (NYSE:EGO) was down nearly 2%.
• Goldcorp (NYSE:GG) was more than 2% lower.
• Kinross Gold was up around 0.2%.
• Newmont Mining (NYSE:NEM) was down 1%.
• NovaGold Resources (AMEX:NG) was down more than 1.4%.
• Yamana Gold (NYSE:AUY) was down nearly 1.4%.

Silver mining shares were sharply lower as well.

• Coeur d’Alene Mines (NYSE:CDE) was sharply lower, down more than 2.8%.
• Hecla Mining (NYSE:HL) was down more than 2.1%.
• Pan American Silver (NASDAQ:PAAS) was showing losses of around 1.4%.
• Silver Wheaton (NYSE:SLW) was down around 1.35%.
• Silver Standard Resources (NASDAQ:SSRI) was more than 1.6% lower.

As of this writing, Andrew Burger did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.