Good buying opportunities in natural gas on MCX

Energy products have done very well in the current week. Crude has gained 4% while natural gas prices have gone up 6%, the latter on the back of good manufacturing and industrial data from the US and Europe.

 

It has been an exceptional week for gold with the yellow metal gaining 5% and is now at record high levels at USD 1,090 per troy ounce. CNBC-TV18's Manisha Gupta gives us the key commodity strategies.

Here is a verbatim transcript of Manisha Gupta's comments on CNBC-TV18. Also watch the accompanying video.

Energy products actually have done quite well in this current week. Crude prices are up 4%. If you look at natural gas prices those have gained 6%. Even though crude is holding around USD 80 per barrel, the natural gas prices have flared up quite strongly on positive manufacturing and industrial data that you have seen come in from the US and Europe in this week itself.

 

It is still a good buying opportunity on the Indian exchanges on MCX November contract you could buy it at Rs 223 per mmbtu. One trading lot is Rs 1250 mmbtu for which the cost comes at around Rs 280,000. 5% of that is what you give to the exchange which comes to around Rs 14,000. On the higher side Rs 228 is your immediate resistance. With that strategy you stand to gain around Rs 6250 per lot.

 

Gold is up 5% this week. It is still holding around USD 1,090 per ounce and USD 1,097 per ounce is its all time high. But it is the US employment data in the evening, which is expected to be slightly on the weaker side and that is supporting commodities as the money would go into high yielding assets.

 

There was a bit of profit taking yesterday. The market fell after India bought 200 tonne from IMF. But there have been statements coming in from Japan, South Korea, and Australia with all those central banks saying that they are in no rush for IMF gold right now because the gold in their country is still on the cheaper side.

 

Apart from that, gold has not been able to cross USD 1,100 per ounce and has been unable to do so mainly due to some long liquidation. Most of the funds are holding gold prices on the thought that in the coming 2-3 years gold prices may double. But come November end, most of these funds also close their books for the year end, and that might take the gold prices slightly on the lower side. But even then the weakness in the US dollar, crude above USD 80 per barrel, lower interest rates all of those factors have been very supportive for gold.