April Comex gold futures closed up $17.10 at $1,122.50 Tuesday. Prices closed nearer the session high on short covering and fresh speculative buying interest. A weaker U.S. dollar index and solidly higher crude oil futures prices helped to boost gold prices Tuesday.

The gold market was also supported by better physical demand for gold this week, and by ongoing concerns about the sovereign debt of the smaller European Union countries. Wire service reports said some traders are calling gold "the ultimate currency" amid the financial and economic problems worldwide, but especially in Europe.

Precious metals traders were awaiting Tuesday afternoon's announcement from the U.S. Federal Reserve following the meeting of the Federal Open Market Committee. Traders did not expect the Fed to raise U.S. interest rates, but were keen to examine the wording of the official press release. Some gold traders reckoned the wording of the Fed's statement could be friendly to the gold market.

The London afternoon gold fixing was $1,124.75, versus the previous afternoon fixing of $1,104.25.

Technically, the gold market bulls this week have kept a five-week-old uptrend from the early-February lows in place on the daily bar chart. Bulls' next upside technical objective is to produce a close above solid technical resistance at the March high of $1,145.80. Bears' next downside price objective is closing prices below solid technical support at last week's low of $1,097.30. First resistance is seen at Tuesday's high of $1,128.10 and then at $1,131.50. Support is seen at $1,120.00 and then at $1,113.00. Wyckoff's Market Rating: 6.5.

May silver futures closed up 24.6 cents at $17.354 an ounce Tuesday. Prices closed near the session high. The key "outside markets" were in a bullish posture for silver Tuesday, as crude oil prices were sharply higher, U.S. stock indexes higher and the U.S. dollar index was lower. Silver bulls have the overall near-term technical advantage and gained some fresh upside technical momentum Tuesday. Prices are in a five-week old uptrend on the daily bar chart. The next downside price objective for the bears is closing prices below solid technical support at last week's low of $16.835. Bulls' next upside price objective is closing prices above solid technical resistance at $18.00 an ounce. First resistance is seen at Tuesday's high of $17.495 and then at $17.75. Next support is seen at $17.25 and then at Tuesday's low of $17.13. Wyckoff's Market Rating: 6.5.

May N.Y. copper closed up 500 points at 336.50 cents Tuesday. Prices closed nearer the session high on short covering and fresh speculative buying interest. The key "outside markets" were also in a bullish posture for copper Tuesday, as crude oil prices were sharply higher, U.S. stock indexes higher and the U.S. dollar index was lower. The copper market bulls have the overall near-term technical advantage. However, prices are still trending lower from the early-March high. The next downside price objective for the bears is closing prices below solid technical support at 316.60 cents. Bulls' next upside objective is pushing and closing prices above solid technical resistance at the March high of 348.70 cents. First resistance is seen at Tuesday's high of 338.40 cents and then at 340.00 cents. First support is seen at 335.00 cents and then at Tuesday's low of 331.00 cents. Wyckoff's Market Rating: 6.5.

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