(Kitco News) - Gold prices are up and hit a four-week high in early U.S. trading Monday. A sell-off in world stock markets overnight and a slumping U.S. dollar index are bullish elements for the safe-haven precious metal to start the trading week. April Comex gold was last up $10.00 an ounce at $1,258.50. May Comex silver was last up $0.247 at $17.995 an ounce. The marketplace is still reacting to the news late Friday that the U.S. House of Representatives Republicans pulled their bill to repeal and replace Obamacare. That was a major defeat for the first foray into new legislation from the Trump Administration, and it now calls into question what Trump can actually get accomplished regarding his pro-business campaign promises. That’s bearish for world stock markets and bullish for safe-haven assets like gold and U.S. Treasuries. Most agree the “Trump rally� that began in many world stock markets in early November has now petered out. The key outside markets on Monday morning see the U.S. dollar index sharply lower and hitting a 4.5-month low overnight. The greenback bears have downside technical momentum as prices are in a steep downtrend on the daily bar chart. Meantime, Nymex crude oil prices are lower and hovering not far above last week’s four-month low. Growing world oil supplies, especially ramped up U.S. shale-oil production, are keeping crude oil prices tamped down. U.S. economic data due for release Monday includes the Texas manufacturing outlook survey. (Note: Follow me on Twitter--@jimwyckoff--for breaking market news.) Live 24 hours gold chart [Kitco Inc.] Technically, April gold futures bulls have gained the slight overall near-term technical advantage. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the February high of $1,264.90. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,225.00. First resistance is seen at $1,264.90 and then at $1,270.00. First support is seen at $1,250.00 and then at the overnight low of $1,245.50. Wyckoff’s Market Rating: 5.5 Live 24 hours silver chart [ Kitco Inc. ] May silver bulls and bears are now back on a level overall near-term technical playing field but the bulls have momentum on their side. Silver prices hit a three-week high overnight. Silver bulls’ next upside price breakout objective is closing futures prices above solid technical resistance at the February high of $18.54 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the March low of $16.82. First resistance is seen at $18.25 and then at $18.54. Next support is seen at the overnight low of $17.78 and then at $17.54. Wyckoff's Market Rating: 5.0.

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