Gold prices are moderately lower in early trading Friday. April Comex gold was last quoted down $5.60 an ounce at $1,121.90. The market is consolidating recent gains and is seeing some mild profit-taking pressure heading into the weekend. Gold is seeing some "outside market" pressure early Friday from a firmer U.S. dollar index and weaker Euro currency. Weaker crude oil prices are also limiting buying interest in gold early Friday.

There are no major U.S. economic reports due for release Friday, which leaves the focus of precious metals traders on the currency markets and the European Union’s efforts to get Greece’s debt situation under control. Reports Friday said leading European countries are “confused” regarding how to proceed with programs to aid Greece. That put downside price pressure on the Euro currency, which in turn led to selling pressure in gold.

Spot gold in Europe was firmer early in trading, but backed off its highs when the Euro came under pressure. London traders called Friday’s price action a “trading range” affair in gold. However, many London traders do have a “buy the dip” mentality in gold, at present, given the still-positive near-term technical posture of the market.

In overnight trading, the London A.M. gold fix was $1,121.50 versus the previous afternoon fixing of $1,122.75.

Technically, April Comex gold sees a six-week-old price uptrend still in place on the daily bar chart. There is strong chart resistance at the March high of $1,145.80. For April gold, shorter-term technical resistance is seen at the overnight high of $1,127.50 and then at this week’s high of  $1,133.90. Buy stops likely reside just above those levels. Sell stops likely reside just below shorter-term support at Thursday’s low of $1,118.20 and then at $1,110.00. Solid technical support is located at last week's low of $1,097.30. Today's key near-term Fibonacci pivot level for April gold: $1,128.00.

Comex silver futures are weaker in early trading Friday. The market is under selling pressure from a firmer U.S. dollar index and weaker crude oil prices.
May silver last traded down 14.7 cents an ounce at $17.275. Prices remain in a six-week-old uptrend on the daily chart. Silver bulls still maintain the overall near-term technical advantage. May silver finds shorter-term technical resistance at the overnight high of $17.42 an ounce, and then at this week’s high of $17.60. Buy stops likely reside just above those levels. Shorter-term technical support for May silver is located at $17.13 and then at this week’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 $17.16.

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