By Jim Wyckoff Of Kitco News (Kitco News) – Comex April gold futures prices are trading higher in early U.S. dealings Wednesday. Bargain hunters have once again stepped in to buy the recent dip in prices. The key “outside markets� are also in a bullish daily posture for the precious metals Wednesday morning, as the U.S. dollar index is weaker and crude oil prices are higher. April gold last traded up $10.90 at $1,728.70 an ounce. Spot gold was last quoted up $6.70 an ounce at $1,728.25. March Comex silver last traded up $0.327 at $33.68 an ounce. The market place is leaning more toward a “risk on� mentality so far Wednesday, which is also benefiting raw commodity markets, including gold and silver. Greece has apparently secured its next round of bailout money from the EU, but some paper work still needs to be signed. It seems the market place really wants to start looking beyond the European Union debt and financial crisis, but the reality of that situation likely dictates such will not be the case any time soon. While it may appear the gold market sometimes reacts in a bearish fashion to any flare-up in the EU debt crisis on a day-to-day basis, by following other commodity markets lower, the overall EU debt and financial crisis is a major underlying bullish fundamental for the safe-haven asset gold. The U.S. dollar index is weaker Wednesday morning, which is a supportive factor for the precious metals. Meantime, Nymex crude oil futures prices are trading higher Wednesday, hitting a fresh four-week high overnight and have pushed back above the key $100-a-barrel level. The higher crude oil prices are also a positive for the precious metals. Crude oil and the U.S. dollar index will remain the two key “outside markets� that will generally have at least some daily influence on gold and silver price moves. U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the Empire State manufacturing survey, Treasury international capital flows, industrial production and capacity utilization, the NAHB housing market index, the weekly DOE energy stocks report, and the FOMC meeting minutes. The London A.M. gold fixing was $1,725.50 versus the previous London P.M. fixing of $1,722.00. Technically, April gold futures bulls had faded and needed to show fresh power soon. Bulls still have more work to do in the near term to suggest an uptrend can be restarted on the daily chart. Bulls’ next upside technical breakout objective is to produce a close above solid technical resistance at the February high of $1,765.90. Bears’ next near-term downside price objective is closing prices below psychological support at $1,700.00. First resistance is seen at this week’s high of $1,735.40 and then at $1,750.00. First support is seen at the overnight low of $1,720.30 and then at this week’s low of $1,713.80. March silver futures bulls still have the overall near-term technical advantage, but prices have been trading sideways for three weeks as the bulls have also faded a bit. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the February high of $34.52 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $32.50. First resistance is seen at the overnight high of $33.825 and then at this week’s high of $34.035. Next support is seen at the overnight low of $33.545 and then at this week’s low of $33.255. Follow me on Twitter to immediately get the very latest market developments. If you are not on board, then you are not getting key analysis and perspective as fast or as often as you could! Follow me on Twitter to get my very timely intra-day and after-hours briefs on precious metals price action. The precious markets will remain very active. If you want market analysis fast, and in after-hours trading, then follow my up-to-the-second precious metals market perspective on Twitter. It’s free, too. My account is @jimwyckoff. By Jim Wyckoff contributing to Kitco News; jim@jimwyckoff.com

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