Reports suggesting that U.S. House Speaker John Boehner and President Barack Obama were moving closer to a fiscal cliff deal sent gold tumbling to a three-month low. Investors grew concerned that a budget deal could mean less economic stimulus from the federal government.

Gold futures for February delivery dropped 1.6% to $1,670.70 on Tuesday, according to CME Group. Gold traded as high as $1,704.40 and as low as $1,662. Gold bullion closed in London at $1,674, according to BullionVault.

Silver futures for February delivery fell almost 2% to $31.64 per ounce. Tuesday’s high for silver was $32.54, while the low was $31.41.

Gold and silver funds sank in Tuesday trading.

• The SPDR Gold Trust (NYSE:GLD) dropped 1.4%.
• The iShares Gold Trust (NYSE:IAU) fell 1.5%.
• The iShares Silver Trust (NYSE:SLV) plunged 1.8%.

Gold and silver mining ETFs were down during the day.

• The Market Vectors Gold Miners ETF (NYSE:GDX) sank 1.6%.
• The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) tumbled 2.7%.
• The Global X Silver Miners ETF (NYSE:SIL) retreated 1.4%.

Gold mining shares fell, with NovaGold Resources (NYSE:NG), falling the most.

• Agnico-Eagle Mines (NYSE:AEM) dropped 2.2%.
• Barrick Gold (NYSE:ABX) fell 1.5%.
• Eldorado Gold (NYSE:EGO) sank 3.9%.
• Goldcorp (NYSE:GG) slipped 1.6%.
• Kinross Gold (NYSE:KGC) declined 2.1%.
• Newmont Mining (NYSE:NEM) dipped 0.7%.
• NovaGold Resources plunged 4.4%.
• Yamana Gold (NYSE:AUY) moved down 1.5%.

Silver mining shares slid on Tuesday.

• Coeur d’Alene Mines (NYSE:CDE) sank 1.8%.
• Hecla Mining (NYSE:HL) fell 1.9%.
• Pan American Silver (NASDAQ:PAAS) dropped 3.4%.
• Silver Wheaton (NYSE:SLW) retreated 2.9%
• Silver Standard Resources (NASDAQ:SSRI) tumbled 3%.

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