Gold may correct to Rs 32000/10 gm soon: Motilal Oswal

Kishore Narne of Motilal Oswal Commodity Brokers is bearish on gold and sees the precious metal heading toward Rs 32,000 per 10 gram in the next week or so. The yellow metal touched a high of USD 1,420-1,430 per ounce, but it wasn’t able to sustain in the global markets, he said.

For the rupee he has an intraday target of close to 67.60/USD-67.80/USD, but gradually it should be going back to 65.80/USD kind of levels in the next week or ten days, he added. Also Read: Easing geopolitical tensions can hurt gold prices: Emkay Below is the verbatim transcript of Kishore Narne's interview on CNBC-TV18 Q: We have to start with gold. What is the strategy now? A: Gold has made top of around USD 1,420-1,430 per ounce and then it was not able to sustain in the global market. We are looking for much more decline and on the domestic market; the rupee was on a major support factor, which has been right now again correcting. So, at this point of time we should remain bearish on gold with current levels of slightly higher of around Rs 34,500 per 10 gm kind of levels as selling levels and probably look for targets close to Rs 33,800 per 10gm with a stop loss at Rs 33,800 per 10gm, but overall if you see a week or ten days, we should be in decent downside probably somewhere close to Rs 32,000 per 10gm is possible in the next week or so. Q: What about the other precious metal, silver? A: Slight rally towards Rs 54,500 per kg in intraday should be seen as a selling opportunity. A stop loss should be much wider because of the recent volatility Rs 55,500 per kg; Rs 1,000 stop loss should be maintained and target close to Rs 53,000 per kg or Rs 53,800 per kg kind of levels should be possible. Q: Your thoughts on currency. How would you trade the rupee-dollar now? A: Rupee-dollar has overshot these fundamentals and then probably we should be correcting decently on the dollar front. Intraday targets are close to 67.60/USD-67.80/USD kind of levels, but gradually we should be at least going back to 65.80/USD kind of levels if you see towards in the next week or ten days. But sustainability below 63/USD or 64/USD - there should be some fundamental changes on the government policy or otherwise I do not think short-term measures will be able to reverse the trend in rupee. But I rule that out at least for the next month or so beyond 70/USD. That is what we have touched in the non-deliverable forwards (NDF) market and I do not think it will be breaking that level anytime soon.