Gold prices are steady to slightly higher in early U.S. trading Tuesday, on some short covering and bargain hunting after falling to a four-week low on Monday. Gold bulls are still on shaky technical ground. April gold was last up $1.00 at $1,312.00 an ounce. Spot gold was last quoted up $2.40 at $1,312.50. May Comex silver last traded down $0.032 at $20.025 an ounce.

The metals markets may get some fresh direction Tuesday from U.S. economic data due out that includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, the S&P/Case-Shiller home price index, the monthly house price index, new residential sales, the consumer confidence index, and the Richmond Fed business survey.

In overnight news, the German Ifo business confidence index weakened in March, in part due to the crisis in Ukraine. The Ifo index came in at 110.7 in March versus 111.3 in February. Forecasts were for a reading of 108.0 in March.

The leaders of the world’s largest economies (formerly called the G-8 and now called the G-7) moved onTuesday to kick Russia out of the group. The action was not unexpected and had little market impact.

Traders are still buzzing about the downbeat manufacturing data from China on Monday, which continued a trend of weaker-than-expected economic data coming from the world’s second-largest economy. There is now talk in the market place that China economic officials may soon act to invigorate their economy with monetary stimulus.

Wyckoff’s Daily Risk Rating: 6.0 (The Ukraine situation has for the moment de-escalated but is still an unsettling market factor.)

(Wyckoff’s Daily Risk Rating is your way to quickly gauge investor risk appetite in the world market place each day. Each day I assess the “risk-on” or “risk-off” trader mentality in the market place with a numerical reading of 1 to 10, with 1 being least risk-averse (most risk-on) and 10 being the most risk-averse (risk-off), and 5 being neutral.

The London A.M. gold fix is $1,314.75 versus the P.M. fixing of $1,310.75.

Technically, gold futures bears have the overall near-term technical advantage and are hovering near Monday’s four-week low. Bulls’ next upside near-term price breakout objective is to produce a close above technical resistance at $1,350.00. Bears' next near-term downside breakout price objective is closing prices below technical support at $1,300.00. First resistance is seen at the overnight high of $1,318.00 and then at $1,325.00. First support is seen at Monday’s low of $1,308.50 and then at $1,310.00.  

May silver futures hit a fresh six-week low overnight. The bears have the near-term technical advantage. A four-week-old downtrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $21.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $19.00. First resistance is seen at the overnight high of $20.215 and then at Monday’s high of $20.315. Next support is seen at the overnight low of $19.905 and then at $19.50.

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