Updated from 10:15 a.m. ET with latest prices

NEW YORK (

TheStreet

) --

Gold

prices pulled back after breaking $1,600 an ounce on Monday as concerns that the market had gotten too long in recent weeks came to the forefront.

Gains across a broad range of assets, including equities and base metals, took some upside away from precious metals like gold and silver, which investors generally seek out as a safety asset. Lack of significant developments on debt issues in the U.S. and Europe kept lingering anxieties largely in check.

Gold for August delivery fell $19 to $1,583 an ounce at the Comex division of the New York Mercantile Exchange. The yellow bullion reached as high as $1,610.70 an ounce and $1,582.70 on the lower end. Meanwhile, the spot gold price was down by $21, according to Kitco's gold index.

Vote: Where will gold prices finish in 2011?

Silver

ticked down 20 cents to $40.15 an ounce.

Lack of progress on the deficit debate in the U.S. caused investors to load up on the yellow bullion Monday. Global markets finished in the red amidst European contagion fears. August futures for gold climbed to a record $1607.90 on ounce high in intraday trading yesterday.

"There's an expectation that you will see a bit of correction," said Michael Widmer, metals strategist at Bank of America Merrill Lynch. "Some of that comes from the technical side." A report by GoldCore explained that corrections often follow a round of record highs.

"Gold at $1,603 per ounce is only 2.5% above the recent record nominal price seen on April 29th at $1,563.70 per ounce. Thus, gold has had a two-month correction and consolidation prior to reaching the new nominal highs over $1,600 per ounce," said GoldCore.

Even as some long term investors sold gold to take profits, many analysts believe that gold may still climb to fresh highs after a slight correction. GoldCore predicts that it is possible for gold to reach $1,700 an ounce.

Most gold mining stocks

slipped with the physical market, even though

Kinross Gold

(KGC) - Get Report

fell 1.7% to $17.34.

Yamana Gold

(AUY) - Get Report

was down 3.2% to $12.86 and

Eldorado Gold

(EGO) - Get Report

was down 2% to $18.07.

Meanwhile, silver is off the $50 highs reached earlier in April but has been rallying of late despite easing trends in Tuesday's trading. "Most of the inflow has been speculative money," said Widmer of Bank of America Merrill Lynch. Widmer noted, however, the many investors believe that a pickup in industrial demand for silver from emerging markets will help prices in the medium term.

-- Written by Chao Deng in New York.

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