Comex Gold and Silver prices are higher Tuesday morning, with gold pushing back above what was psychological resistance at the $1,500.00-an-ounce level. Short covering and bargain-hunting buying are seen following selling pressure late last week. Trading is quieter coming out of the U.S. Independence Day holiday Monday. Spot gold prices made solid gains Monday and Comex gold futures are playing catch-up Tuesday morning. Reports say better physical demand for gold is supporting the market. Higher Crude Oil prices Tuesday morning are also bullish for the precious metals, while a firmer U.S. dollar index is somewhat limiting gains in the metals. August gold last traded up $20.60 an ounce at $1,503.20. Spot gold last traded up $5.80 an ounce at $1,502.50. July Comex silver last traded up $0.971 at $34.695 an ounce. There have been no major developments in Greece’s sovereign debt crisis and the European Union/International Monetary Fund efforts to deal with it. With the Greek parliament last week passing the very unpopular austerity measures the world market place is looking at other matters. However, the Greek debt crisis has just not disappeared and there are other European Union countries that have serious debt problems, too. The EU debt crisis will continue to be a bullish underlying factor for the precious metals markets. The U.S. dollar index is trading firmer Tuesday morning, on short covering in a bear market. The greenback bulls have faded recently and the index remains in an overall technically bearish posture, which is also an underlying bullish factor for gold and silver. Crude oil prices are trading moderately higher early Tuesday. Crude oil bulls have recently gained some fresh upside near-term technical momentum to begin to suggest that a market low is in place. If crude can continue to recover from the six-month low seen early last week, that would also be a bullish underlying factor for the metals. U.S. economic data due for release Tuesday is light and includes manufacturers’ shipments and orders. The London A.M. Gold fixing was $1,498.75 versus the previous P.M. fixing of $1,495.50. Technically, August Comex gold futures prices have seen some fresh chart damage inflicted as prices Friday hit a fresh six-week low and close at a bearish weekly low close. Prices are in a two-week-old downtrend on the daily bar chart. Bulls' next near-term upside technical objective is to produce a close above strong technical resistance at last week's high of $1,514.80. Bears' next near-term downside price objective is closing prices below solid technical support at the May low of $1,464.10. First resistance is seen at the overnight high of $1,505.20 and then at $1,510.00. First support is seen at $1,490.00 and then at the overnight low of $1,486.20. July Silver futures prices futures bulls still have the longer-term technical advantage. However, prices are in a five-week-old downtrend on the daily bar chart. The next downside price breakout objective for the bears is closing prices below solid technical support at last week's low of $33.38. Bulls' next upside price objective is producing a close above solid technical resistance at $36.77 an ounce. First resistance is seen at $35.00 and then at last week’s high of $35.14. Next support is seen at $34.50 and then at $34.00.

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