Gold prices are moderately higher in early trading Tuesday, on more short covering from recent selling pressure and amid a weaker U.S. dollar against the other major currencies. Better physical demand this week and higher risk appetite among investors are also supporting the precious metal. April Comex gold futures last traded up $7.90 an ounce at $1,113.30.

The gold market is also getting underlying support early this week from renewed concerns regarding the burdensome debt and shaky credit ratings of some European Union countries, with Greece standing out.

Traders are awaiting the official statement coming shortly after Tuesday's meeting of the Federal Open Market Committee. Precious metals traders are likely to be tentative ahead of the results of that meeting, due in early afternoon Tuesday.

Spot gold in Europe was also higher Tuesday. London traders were impressed with gold's ability to post gains Monday despite a weaker Euro currency and stronger U.S. dollar. They also noted the technical picture in gold is improving.

In overnight trading, the London A.M. gold fix was $1,113.25 versus the previous afternoon fixing of $1,104.25.  London silver was fixed at $17.24 an ounce, versus the previous fixing of $17.02.

Technically, April Comex gold sees a five-week-old price uptrend still in place on the daily bar chart, having been bolstered by price gains Monday and early Tuesday. However, the gold market bulls have more work to do in the near term to obtain better upside technical momentum that would then suggest prices moving above strong chart resistance at the March high of $1,145.80. For April gold, shorter-term technical resistance is seen at Tuesday's high of $1,116.00 and then at  $1,120.00. Buy stops likely reside just above those levels. Sell stops likely reside just below shorter-term support at the overnight low of $1,108.10 and then at Monday's low of $1,101.00. Solid technical support is located at $1,088.50. Today's key near-term Fibonacci pivot level for April gold: $1,116.00.

Comex silver futures are firmer in early trading Tuesday. May silver last traded up 14.7 cents an ounce at $17.225. Prices remain in a five-week-old uptrend on the daily chart. Silver bulls maintain the near-term technical advantage. May silver finds shorter-term technical resistance at the overnight high of $17.325 an ounce, and then at $17.53. Buy stops likely reside just above those levels. Shorter-term technical support for May silver is located at the overnight low of $17.13 and then at Monday's low of $16.965. Sell stops are likely placed just below those levels. Today's key Fibonacci pivot level for May silver futures is located at $16.99.

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