Long-term bullishness seen in gold: Global Fin Markets

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Bharath Kumar , Director of Global Financial Markets said the market was still very much bullish on gold. He recommended aggressive traders to buy at levels around Rs 9,120 on MCX.

On crude, he said the market was a little hesitant and advised to book 50% profits on long positions.

Excerpts from CNBC-TV18's exclusive interview with Bharath Kumar:

Q: Your take on gold, USD 695 has been conquered?

A: The market is still bullish. Coming to long-term, USD 640 is a decent support and currently even if the market slips down to an extent of USD 685, and coming to MCX somewhere around Rs 9,120 ranges, I think one should go for buying.

Currently, the market is poised to touch Rs 9,220-9,230 if the market does go a little sideways. If it closes above Rs 9,220 further bullishness is seen. Currently, just hang on to the long positions and aggressive trader can even go for buying at somewhere around Rs 9,120.

Q: Fundamentally the prices are very well supported; technically it is trading above 100, 200 and 400-day moving averages. How much more bullishness do you see in the prices. Do you think USD 700 would be easy to cross?

A: I think USD 700-715, which was the previous high technically, the market might show a little bit of hesitation in those particular ranges. If the market corrects from those ranges and it can sustain above USD 685, the market is poised to touch even USD 800. So, long-term bullishness is very much in the market, and one is just waiting for the market to close decisively above USD 715-720 mark. The market is expected to touch even USD 800 to USD 826.

Q: Coming to crude, it has traded actually at USD 77.40, very near all-time highs. Would you be looking at USD 82-84, those kinds of highs in crude as well?

A: Yes, I had mentioned earlier as well that USD 69 was a very good support for the market. Currently, we are just a little bit cautious at USD 78, wherein the market has shown a little bit of hesitation. So, as the market reaches somewhere around USD 77.5 to USD 78, it is better to book 50% profits on long positions. Again as the market comes down and slowly consolidates somewhere around USD 74, I think USD 82 is still there in the market.