Gold prices are modestly lower in early trading Monday, on follow-through selling pressure from solid losses posted on Friday. April Comex gold was last quoted down $5.50 an ounce at $1,102.10.  Gold is feeling downside pressure from bearishly postured "outside markets" early Monday--a firmer U.S. dollar against the other major currencies and weaker crude oil futures prices. The U.S. dollar index hit a fresh three-week high overnight, while crude oil prices are holding true to recent historical form and backing down after challenging the $85.00-a-barrel level last week.

Spot gold in Europe was also weaker Monday. London traders said the gold market saw pressure from a weaker Euro currency, amid ongoing European Union debt problems. There are worries among traders that EU members may fail to agree on a debt aid plan for Greece. Wire reports quoted Germany's Chancellor Merkel as saying Greece did not need aid.

Losses in London gold were limited Monday by continued good physical demand. An analyst pointed out that selling interest in gold in the near term may be limited by the fact that speculators, at present, are not heavily long the precious metal from a historical perspective.

In overnight trading, the London A.M. gold fix was $1,104.25 versus the previous afternoon fixing of $1,105.50. 

Technically, April Comex gold bulls are fading as follow-through selling pressure occurs from solid losses posted on Friday. Key chart support is located at the last "reaction low" on the daily bar chart, located at $1,097.30. A close below that key technical level would negate a six-week-old price uptrend in place on the daily bar chart and produce near-term technical damage. For April gold, shorter-term technical resistance is seen at Monday's high of $1,108.60 and then at  $1,120.00. Buy stops likely reside just above those levels. Stronger chart resistance is located at last week's high of $1,133.90. Sell stops likely reside just below shorter-term support at $1,100.00 and then at $1,097.30. Today's key near-term Fibonacci pivot level for April gold: $1,095.00.

Comex silver futures are lower in early trading Monday, amid the firmer U.S. dollar and weaker crude oil and U.S. stock indexes.  Prices hit a fresh three-week low overnight as the silver bulls are also fading, technically. May silver last traded down 24.7 cents an ounce at $16.785. A six-week-old uptrend on the daily chart has been negated by price action Friday and Monday, to produce some near-term technical damage. May silver finds shorter-term technical resistance at the overnight high of $17.01 an ounce, and then at $17.25. Buy stops likely reside just above those levels. Shorter-term technical support for May silver is located at the overnight low of $16.77 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 $16.53.

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