Remain negative on precious metals: IIFL

In an interview to CNBC-TV18, Tarang Bhanushali of IIFL shared his outlook on precious metals and copper.

Below is the verbatim transcript of Bhanushali's interview with CNBC-TV18.

Q: Do you expect the pressure to continue through the day?

A: Yes. We do expect prices to go down further but for the first half we expect a minor pullback in most of the metals. That would be a good opportunity to go short on most of the commodities. Once we see a bounce back, traders should continue to remain short in the precious metals pack.

Once gold breaks USD 1,560 per ounce on the downside, it is added towards USD 1,535 per ounce. It is the level where we are looking at.

Silver, below USD 28 per ounce, is headed towards USD 26.1-26.2 per ounce in the international market.

So, on the whole we would like to remain negative on the precious metals pack.

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Q: What about copper, has that also been showing you some weakening signs?

A: Yes, copper did not break the USD 7,500 per tonne levels for quite sometime. It has gone below that on the London Metal Exchange (LME). We believe it is headed towards USD 7,300 per tonne, any bounce in the domestic market to around Rs 411-412 per kilogram levels would be a good opportunity to short keeping a target of Rs 403 per kilogram and Rs 400 per kilogram in the medium-term.