Bullions, base metals trade volatile as crude rallies after API report

Bullions, base metals trade volatile as crude rallies after API report

Precious Metals are trading on a positive note ahead of the key macroeconomic releases scheduled for the evening today. Gold futures are trading at 29430, up 83 or 0.28% whereas Silver is at 39391, up 0.22%.

Precious Metals recovered sharply from lows yesterday after setting up a false breakdown catching eager shorts on the wrong side. The focus will be on the key economic data releases today evening.

We have unemployment claims, durable goods report and consumer sentiment with claims dropping 9000 to 240,000 and durables good showing a respectable growth of 0.4% in October along with a slightly improving consumer sentiment.

A stronger report might see bullions come under selling pressure later in the evening today with increased chances of prices breaking below key support levels.

Technically, the immediate term trend still remains neutral given the lack of catalysts and quick short selling that emerges as prices rally to technical levels. Gold finds strong support at 29300 breaking which the focus turns to support at 29000 and possibly lower in the medium term whereas, on the flipside, resistance is seen at 29450 today.

Silver continues to struggle above resistance at 39000 and a daily close below this would call for a deep short-term correction in the white metal.

Base Metals are trading on a mixed note today but continue to remain within the broader consolidation range seen over the past few trading sessions. Aluminum is seen gaining a percent at 135.75 whereas Nickel is down 0.93% to trade at 759.60. Copper is up 0.16% to trade at 447.85 currently.

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