By Jim Wyckoff Comex gold futures prices on Monday morning are seeing follow-through selling pressure from strong losses on Friday, in the wake of news Goldman Sachs has been charged with fraud by the U.S. Securities and Exchange Commission. The Goldman news has sapped investor risk appetite, which has pressured many commodity futures markets and boosted the U.S. dollar. Crude oil futures are sharply lower Monday morning. There is talk in the market place that Goldman market maker Paulson & Co., which was also implicated by the SEC on Friday, holds a large long gold position and may, or soon will be, liquidating those positions. That is also putting downside price pressure on gold to start the week. The gold market bulls were dealt a disappointing blow on Friday when the precious yellow metal failed to rally, and instead sold off sharply, on the Goldman news. Gold has traditionally been a safe-haven asset for investors during times of heightened uncertainty, but that was not the case on Friday's Goldman news. Spot gold prices in London were also lower and hit a fresh two-week low Monday as the Goldman news weighing on investor risk appetite. The Euro was under additional pressure Monday from the airliner flight ban across Europe, due to the volcanic activity in Iceland. Traders said the weak Euro prompted European traders to take profits on long gold positions. The London A.M. gold fix was $1,127.50 versus the previous P.M. fixing of $1,151.50. Technically, June Comex gold futures bulls have faded the past two trading sessions, including a technically bearish weekly low close on Friday. However, no serious chart damage has yet occurred and the bulls still have the overall near-term technical advantage. Prices are also still in a two-month-old uptrend on the daily bar chart. For June gold, shorter-term technical resistance is seen at Monday's high of $1,138.50 and then at $1,146.60. Buy stops likely reside just above those levels. Sell stops likely reside just below shorter-term support at Monday's low of $1,124.30 and then at $1,120.00. Today's key near-term Fibonacci pivot level for June gold: $1,123.00. Comex silver futures are lower in early trading Monday, on follow-through selling pressure from strong losses on Friday. Silver also produced a bearish weekly low close on Friday. However, no serious chart damage has yet occurred in silver. The silver bulls still have the overall near-term technical advantage. May silver last traded down 6.0 cents an ounce at $17.615. May silver finds shorter-term technical resistance at the overnight high of $17.745 and then at $18.00. Buy stops likely reside just above those levels. Shorter-term technical support for May silver is located at the overnight low of $17.49 and then at $17.25. Sell stops are likely placed just below those levels. Today's key Fibonacci pivot level for May silver futures is located at $17.10.

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