Aug 29, 2013, 04.03 PM | Source: CNBC-TV18
Given the Syrian crisis, crude has the potential to escalate to USD 118-120 per barrel very shortly, Priti Gupta of Anand Rathi Commodities told CNBC-TV18.
Priti Gupta (more)
Director, Anand Rathi Commodities | Capital Expertise: Commodities ,Currencies
Given the Syrian crisis, crude has the potential to escalate to USD 118-120 per barrel very shortly, she told CNBC-TV18. Brent crude slipped below USD 116 a barrel on Thursday .
Meanwhile, she recommends buying silver for the next contract.
Below is the edited transcript of Priti Gupta’s interview with CNBC-TV18
Q: Your views on gold after hitting Rs 34000 per 10gm mark on MCX. What could the next level be?
A: Interestingly there is double whammy for gold. One is the international markets. Belying all investment gurus saying that gold seems to have lost its safe haven demand, I think that is coming back. We could still see it inching up to USD 1,455 per ounce or USD 1,460 per ounce.
The next bet is the rupee. Today, however there has been a sentimental pullback, but eventually if it is headed to 70/USD then we could easily look at Rs 36,000-36,500 per 10gm prices in India.
Q: In this contract or in the next contract?
A: In the next contract, volatility could be matter of days because the rupee has moved pretty much 2 percent in a day and that could take it up to Rs 36,000 per 10 gm in the next couple of days.
Q: Syrian hostilities have also made interesting trading ideas in crude. What are the levels you all recommending in crude for the moment, for the week if you have one and more importantly for the September contract?
A: We will see a bit of pullback today on the back of the rupee, but we would see it inching up to USD 118-120 per barrel very shortly. It is also a question of, if there is any peace negotiated in that area, but on the back of that USD 120 per barrel seems to be very easily reachable.
Q: What about silver because that sitting at seven month high, do you have a strategy there?
A: Right now there is a buy across the board on the back of gold as well as the rupee. So, even in silver we are going to recommend a buy for the next contract at least.