Sell gold, crude, copper & silver on rallies: T Gnanasekar

T Gnanasekar of Commtrendz advises selling gold on rallies because he expects fall in gold prices to the levels of Rs 30,500 per 10 gm from around Rs 31,300 per 10 gm.

He expects crude prices to consolidate and so advises to sell crude too on rallies. Also read: Weaker oil, strong equities clip gold prices Below is the verbatim transcript of his interview on CNBC-TV18 Q: What is your call on gold?
A: Basically, gold has benefited from the recent risk off sentiment in the entire markets and that could start getting corrected now. The way rupee is falling, it is surely going to have an effect on the domestic prices as well. So it is in for a deeper fall from current levels. It is heading towards Rs 30,500 per 10 gm levels, presently it is hovering around Rs 31,300 per 10 gm. It is a sell on rallies. Q: What about crude?
A: Energy prices will consolidate now after the Syria crisis has diminished for the time being. But really don't know what kind of newsflow will again come from Middle East. So the energy market will be in a watch out mode at this point in time so which is why I think it will remain in a consolidation.
Having said that the premium which got built-in because of all the uncertainty, that will start getting corrected. Nymex crude was around USD 103 and it went all the way to USD 110. So, this premium would get corrected and that is why we would like to sell that also on any rallies from here. Q: What would be your strategy on copper and the targets over there?
A: As far as base metals are concerned the rate is essentially on the back of short covering plus we had some decently good data from China comforting the markets. So, a rally from here on will completely depend on what happens with Fed and all other external reasons. Even there, the rupee effect would be felt and I would sell it on rallies in the domestic market as well. Q: What about silver?
A: Silver, also sell on rallies though the economic data should cushion the fall compared to gold. However, eventually it will follow precious metal gold in terms of direction. So I would sell December silver in any rallies to Rs 53800-53900 per kilo gram levels.