Gold and silver likely to correct: Kishore Narne

Also Read: Expert tips to trade gold, crude, nickel & copper   

Below is the verbatim transcript of the interview

Q: Let us first start with crude palm oil and soybeans - those are the areas which do not normally ask you, we have seen a significant downturn in crude palm oil for sometime now. Will you short it even at these levels?

A: We would be looking for bounce backs to go short on both the edible oils and oil seeds complex at this point of time. Again, soybean has been beaten down significantly over the last month. So, anything below Rs 3,000 it should not be bearish from here. Probably, Rs 2,800-2,900 levels are good to buy for a bounce back towards Rs 3,200 kind of levels. But again on a trend side, it could remain bearish for the next couple of months as we go into the harvest of domestic crop.

Q: Gold and silver both are in the red. Is that partly because of the rupee as well and how would you trade it from here?

A: After spike in trade on Monday, yesterday was a slightly lacklustre session on the international markets. Again today, rupee is putting some pressure. But today, I would suggest buying gold December contract close to Rs 31,300 per 10 gram kind of a level, looking for a technical bounce back from here with stop losses of Rs 31,050 per 10 gram. Targets should be placed at Rs 31,600-31,700 per 10 gram for absolute short-term.

Q: What is your view on silver?

A: Silver should be seeing downside here. Lower levels towards around Rs 63,200 per kilogram should be used for buying. But, at this point of time, because there was a huge spike on Monday, the short-term clarity is not there, levels are not fitting into the risk-reward ratio. So, I would avoid silver.

Q: What about crude?

A: Crude has seen a significant beating. I think right now, USD 92 per barrel to USD 91 per barrel should be seeing some kind of a support. So, I would like to buy November crude contract at around Rs 4,800 per barrel for targets of Rs 4,900 per barrel with Rs 4,740 per barrel as a stop loss.

Q: What do you think of the Currency?

A: Currency, I think 52.10-52.20 should be a good resistance level for rupee on the spot front. So, I would like to go short for the short-term to medium-term, maybe a month or so, looking at rupee-dollar pair reaching again back to 53.10-53.20 kind of a levels but not at the current levels. Anything very close to 52, I would be going short on rupee.