Consolidation seen in precious and base metals – September 03, 2010
Gold continue to find the buying support at lower levels and this is likely to keep the prices upbeat. We may see some consolidation at the current levels. Silver posted yet another high as the bulls completely in control of this market. We may see mild intraday corrections and expect good buying support at lower levels. Platinum posted a good rally even though it still needs a close above 1545 levels to gain further momentum. Palladium remained steady moving sideways to higher posting a positive close.
Base metal prices moved sideways to higher on good buying support at lower levels. Though we did see some intraday gains in some metals, market corrected towards the close. We expect some correction today which is likely to find good buying support at lower levels. Overall momentum for base metals is still in favor of the bulls and likely to remain so as long as the prices remain above the trend reversal levels.