(Kitco News) - Comex gold futures prices are trading modestly higher Monday morning as the market is supported by continued safe-haven investment demand amid the ongoing tensions in the Middle East. A weakening U.S. dollar index is also an underlying bullish factor for gold. Comex April gold last traded up $4.90 an ounce at $1,414.20. Spot gold last traded up $3.70 at $1,414.00. While the civil unrest in the Middle East did not see any new, dramatic developments over the weekend, the situation is still inviting safe-haven investment demand into the precious metals markets. Nymex crude oil futures prices have backed down from last week's 2.5-year high of $103.41 a barrel, on ideas oil will continue to flow from Libya even during a regime change. There are technical clues crude oil prices last week did put in a near-term market top. If so, that would be at least slightly near-term bearish for the precious metals. Still, precious metals traders are keeping one eye on the crude oil market as a gauge of tensions in the Middle East. The U.S. dollar index hit a fresh four-month low overnight. The technical posture of the index is very weak at present. The greenback has also not seen safe-haven buying interest it had enjoyed during past geopolitical unrest. If the U.S. dollar index continues to trade sideways to lower, which is what the technical picture is suggesting at present, then that would be gold-market-bullish. The specter of inflationary price pressures worldwide is also a bullish underlying factor for the precious metals. While crude oil prices have backed down from last week's high, commodity prices in general are still at multi-year highs. Combine that with the central banks of the major industrial economies that have implemented quantitative easing (printing money) and that is a recipe for consumer price inflationary pressures. U.S. economic reports due for release Monday include personal income and outlays, the Chicago ISM business survey, pending home sales and the Texas manufacturing survey. The London A.M. gold fixing was $1,409.75 versus the previous P.M. fixing of $1,402.40. Technically, the gold market bulls have the near-term and longer-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart and are poised to produce a bullish monthly high close on Monday, the last trading day of the month. On the longer-term charts, gold prices have been trending higher for 10 years. Gold bulls' next near-term upside technical breakout objective is to produce a close above strong technical resistance at the all-time high of $1,434.10, scored in early December. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,390.00. First resistance is seen at last week's high of $1,418.80 and then at $1,426.30. Support is seen at the overnight low of $1,407.90 and then at $1,400.00. May Comex silver futures last traded up 66.7 cents at $33.59 an ounce Monday morning. Silver bulls have the solid overall near-term and longer-term technical advantage. Prices are in a four-week-old uptrend on the daily chart and are also poised to produce a bullish monthly high close on Monday. The next downside price breakout objective for the silver bears is closing prices below solid technical support at the January high of $31.27. Bulls' next upside price objective is producing a close above solid technical resistance at last week's high of $34.315 an ounce. First support is seen at the overnight low of $33.255 and then at $33.00. Next resistance is seen at $33.76 and then at $34.00.

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