Gold prices are lower in early trading Tuesday, pressured by a higher U.S. dollar index and lower crude oil futures prices. Profit-taking pressure is a feature early Tuesday, following recent price gains in gold. No significant chart damage has been inflicted this week, but the gold market bulls are fading a bit and need to show fresh power soon to keep the near-term price up-trend in place. April Comex gold was last traded down $6.00 an ounce, at $1,118.00.

Spot gold in Europe was lower Tuesday as the market was pressured by a weaker Euro currency against the U.S. dollar, and by reports from China that quoted China's currency regulator as saying his nation would not likely be making further purchases of gold to add to its reserves. The news from China is not surprising to most veteran gold market watchers, but was a near-term psychological negative for gold prices, nonetheless.

In overnight trading, the London A.M. gold fix was $1,120.00 versus the previous afternoon fixing of $1,125.75. The London silver fixing was $17.05 an ounce, versus $17.33 the previous trading session.

Technically, April Comex gold remains in a four-week-old price uptrend on the daily bar chart. However, the bulls need to show fresh upside strength soon to keep the uptrend in place. The triple moving averages overlaid on the daily bar chart (4-, 9- and 18-day) are still in a bullish posture for April gold, as the 4-day is above the 9-day and the 9-day is above the 18-day moving average. However, the 4-day moving average has turned down, which is a very near-term warning signal for the bulls. One early clue that the near-term price uptrend in April gold is ending would be if the 9-day crossed below the 18-day moving average. For April gold, shorter-term technical resistance is seen at Tuesday's high of $1,125.10 and then at  $1,130.00. Buy stops likely reside just above those levels. Sell stops likely reside just below shorter-term support at $1,110.00 and then at $1,100.00. Today's key near-term Fibonacci pivot level for April gold: $1,107.00.

Comex silver futures are lower in early trading Tuesday, on profit-taking pressure from recent gains. May silver last traded down 24.7 cents an ounce at $17.025. Prices remain in a four-week-old price uptrend on the daily chart. Bulls maintain the near-term technical advantage in silver. May silver finds shorter-term technical resistance at the overnight high of $17.26 an ounce, and then at Monday's high of $17.53. Buy stops likely reside just above those levels. Shorter-term technical support for May silver is located at $15.75 and then at $16.50. Sell stops are likely placed just below those levels. Today's key Fibonacci pivot level for May silver futures is located at $16.45.

By Jim Wyckoff, contributing to Kitco News; jim@jimwyckoff.com