We expect gold and silver to be bearish for the coming week and therefore advice clients to stay on the short side, commodity market expert, Priti Gupta, Anand Rathi Commodities said.
In an interview to CNBC-TV18, Priti Gupta, Director of Anand Rathi Commodities shared her reading and outlook on gold, silver and crude.
Below is the verbatim transcript of Gupta's interview with CNBC-TV18.
Q: There has been mild recovery on gold. What is the trading strategy this morning both on gold and silver?
A: I think the mild recovery that we have seen largely is on the back of short coverings ahead of the US payroll data that will come out this Friday. Therefore, we do not expect that to sustain. For the coming week, we expect gold to be bearish, silver to be bearish as well and therefore would advise clients to stay on the short side.
In dollar terms USD 1,190 per ounce is a possible space that gold could come into given the appreciation in rupee, which we expect to happen over the next few days, will put additional pressure on the prices. So, we maintain sell strategy on both.
Q: How are you trading crude?
A: We have maintained that crude is always in the oversupply range for 2013 and therefore any problems in the supply, any pipeline cutoffs or short-term supply disrupt will take it to certain spikes. We have already seen it around USD 98 per barrel. We do not expect it to cross USD 100 per bbl and for the day we are on the sell side of crude as well.
I think the rupee-dollar level or price is going to have impact on all international commodities. We are expecting that and we have seen some consolidation there and we do expect a slight appreciation in the immediate term, in next two-three days and that will put pressure on all international commodities including crude as well as copper.
ADS BY GOOGLE
video of the day
All portents good; optimistic for next few Diwali's: Damani