Gold may head towards USD 1,270/oz: IIFL

In an interview to CNBC-TV18, Tarang Bhanushali of IIFL spoke about the current trend in commodities market.

Below is a verbatim transcript of the interview: Q: How is it looking for bullion this morning given that gold has come off a bit in the international market? A: If you look at the last 15 days, bullion was trading sideways. In the band of USD 1,300 per ounce to USD 1,340 per ounce there was no major movement coming in gold. However, yesterday's comment by the Fed that the bond buying would taper a bit and also better than expected US data led to the selling in gold futures. We believe now that in the international market gold prices would head towards USD 1,270 per ounce which is the near-term target. The near-term trend has again reversed failing to breach USD 1,340 per ounce on the upside. In the domestic market, the prices have been supported by the fall in the rupee against the dollar, so in intraday basis one can short it for a level of Rs 27,550 per 10gm in the MCX. Q: What about silver today? A: We believe silver too would see some bounce in the opening trade largely because of the rupee again. That should be used as a shorting opportunity and one can keep a target of 1-2 percent for intraday basis.