Comex gold tumbles to near four-month lows, weighed by strength in the U.S. dollar and stock market as well as upbeat economic data; gold currently -0.9% at $1,266.30/oz, silver -1.6% at $16.11/oz.

“Sentiment is bearish for gold… The rise in U.S. trade deficit numbers tells us of the strength of the U.S. economy until the first quarter of next year,” says Chintan Karnani, chief market analyst at Insignia Consultants, adding that the continued rise in bitcoins also is holding down gold prices.

“The economic backdrop is benign, meaning there is no real reason to jump into gold,” says Julius Baer analyst Carsten Menke. “Overall physical demand is down to multi-year lows, so even outside the investment community, there is no real push into gold from the likes of China and India.”

Major precious metals firms are broadly lower: ABX -1.5%, GG -2.4%, NEM-1.5%, KGC -2.7%, EGO -3%, AEM -2%, AUY -2%, IAG -1.5%, RGLD-0.8%, WPM -0.8%.

The SPDR Gold Trust ETF (GLD -1.0%) slumps to a key “make or break” support along the $120 level.

We will be closely watching these levels from this point forward.

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