Time to book profits in gold: T Gnanasekar

Speaking to CNBC-TV18's Udayan Mukherjee, T Gnanasekar of CommTrendz Research expressed his views on the commodity market.

Gnasekar said, "Its getting little uncomfortable technically to buy gold at these levels."

"My sense is that on 12th-13th when the FOMC meet takes place, somewhere close to that markets could correct lower, somewhere close to Rs 31,500-31,600 per 10 grams levels," he further added.

Below is the edited transcript of the interview

Q: What do you do with gold after its recent run?

A: I think its getting little uncomfortable technically to buy at these levels. Certainly I would looks to book profits if one is already holding any long. On a corrective dip, one could look to initiate longs again during the course of the week.

My sense is that on 12th-13th, when the FOMC meet takes place, somewhere close to that markets could correct lower, close to Rs 31,500-31,600 per 10 grams levels. That could be potential opportunity to probably enter again and for potential targets of Rs 32,500-32,600 per 10 grams.

Q: What are QE3 expectations after the weak job numbers doing to the base metals complex?

A: That’s probably the only reason why base metal prices are still holding out and inching upwards. The Chinese numbers which came out this morning were pretty bad. It clearly suggests that unless this QE3 comes, it’s going to be bad for base metals.

So, overall it looks good for base metals right now on the hope that there could be a QE3 and that will stimulate economies and push demand higher. But in a bigger picture and a slightly macro picture, there are still no clear signs that the base metal complex can start rallying higher.