(Kitco News) - Gold prices are trading weaker on some mild profit-taking pressure Monday after hitting another fresh all-time record high of $1,489.70 overnight, basis the Comex June futures contract. Meantime, May Comex silver futures scored a fresh 31-year high of $43.38 an ounce overnight. A firmer U.S. dollar index and lower crude oil prices are somewhat limiting buying interest in the precious metals Monday. Comex June gold last traded down $4.90 an ounce at $1,481.10. Spot gold last traded down $6.40 at $1,480.50. While the gold markets sees some profit taking and market consolidation following recent gains, both precious metals market bulls stand to continue to benefit from the ongoing safe-haven investment demand coming from several fronts. The European Union's smaller countries' sovereign debt crisis is back on the front burner again. This time it's Greece and Ireland that are making the headlines, amid credit ratings downgrades and EU efforts to control the situation. While the tensions in the Middle East and northern Africa may have eased a bit, the problems in that oil-rich region will not go away any time soon. And reports over the weekend said it may take six months to get the Japanese nuclear crisis under control. Reports said China raised its interest rates again Monday, in an effort to curb domestic demand for commodities and ward off price inflation. The Chinese consumer price index rose 5.4% year-on-year in March, as reported late last week. There are widespread notions inflationary price pressures will continue to build in the world's major economies. Precious metals prices have been boosted in recent months in part by heightened inflation concerns among investors. The U.S. dollar index is higher Monday, on short covering after hitting another one-year low on Friday. The firmer greenback Monday is a bit bearish for the precious metals. However, the still very weak technical posture, overall, of the U.S. dollar index remains a bullish factor for the precious metals markets. If the dollar index can produce a sustained uptrend it would be a clue that gold has put in a near-term market top. Crude oil prices are lower Monday morning, which is also bearish for the precious metals. However, crude is still trading around $108.00 a barrel, which is still an underlying bullish factor for the precious metals due to the inflationary implications. Look for the precious metals markets to continue to very closely track price movements in the crude oil market for at least the near term. U.S. economic data due for release Monday is light and includes the NAHB housing market index. The London A.M. gold fixing was $1,484.50 versus the previous P.M. fixing of $1,476.75. Technically, June Comex gold futures bulls still have the solid overall near-term and longer-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Bulls' next near-term upside technical objective is to produce a close above major psychological resistance at $1,500.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at last week's low of $1,445.00. First resistance is seen at the overnight all-time high of $1,489.70 and then at $1,500.00. First support is seen at Friday's low of $1,472.20 and then at $1,460.00. May silver futures last traded up 23.9 cents at $42.81 an ounce Monday as prices pushed to another fresh 31-year high. Bulls have the strong overall near-term and longer-term technical advantage. A 2.5-month-old uptrend is in place on the daily bar chart. There are still no early clues to suggest a market top is close at hand. The next downside price breakout objective for the bears is closing prices below major psychological support at $40.00. Bulls' next upside price objective is producing a close above technical resistance at $45.00 an ounce. First resistance is seen at the overnight contract high of $43.38 and then at $43.50. Next support is seen at $42.50 and then at $42.00.

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