(Kitco News) - Comex gold futures prices are trading higher and hit a fresh four-week high Tuesday morning, on a surprise rise in U.K. consumer prices. A weaker U.S. dollar index and an improving technical posture are also supporting fresh investor buying interest in gold. Comex April gold last traded up $8.10 at $1,373.20 an ounce. Spot gold last traded up $10.40 at $1,373.00. The rise in U.K. consumer price inflation was double the Bank of England's target rate, reports said. While gold reacted bullishly to the U.K. inflation data, the more highly anticipated Chinese inflation data, issued overnight, actually came in lower than expected. Still, with the Continuous Commodity Index at a record high level and with world economies growing more rapidly coming out of recessions, the specter of problematic consumer price inflation worldwide is very real, and many believe very likely, in the coming months. That is gold-market-bullish. The U.S. dollar index is trading weaker Tuesday morning, on a corrective pullback from recent gains. The weaker dollar index is an underlying bullish factor for the precious metals. However, the dollar index does still have some near-term technical momentum in the bulls' favor. Reports overnight said renowned investor George Soros had increased his holdings in the SPDR Gold Trust during the fourth quarter of 2010. U.S. economic reports due for release Tuesday include the weekly Goldman Sachs chain store sales report, retail sales, import and export prices, the Johnson Redbook retail sales report, Treasury capital flows data, the NAHB housing market index, and the Empire State manufacturing survey. The London A.M. gold fixing was $1,372.25 versus the previous P.M. fixing of $1,365.00. Technically, the gold market bulls gained fresh upside near-term technical momentum overnight by pushing prices above solid chart resistance at last week's high and to a fresh four-week high. Prices are in a three-week-old uptrend on the daily bar chart. Gold bulls' next near-term upside technical breakout objective is to produce a close above solid technical resistance at $1,394.70. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,350.00. First resistance is seen at the overnight high of $1,375.00 and then at $1,380.00. Support is seen at the overnight low of $1,361.30 and then at this week's low of $1,354.40. March silver futures last traded up 21.1 cents at $30.735 an ounce Tuesday morning. Prices hit a fresh six-week high overnight. Silver bulls still have the solid overall near-term and longer-term technical advantage. Prices are in a three-week-old uptrend on the daily chart. The next downside price breakout objective for the silver bears is closing prices below solid technical support at $29.50. Bulls' next upside price objective is producing a close above solid technical resistance at the January contract and 30-year high of $31.275 an ounce. First support is seen at the overnight low of $30.475 and then at $30.00. Next resistance is seen at $31.00 and then at $31.275.

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