Silver price to correct further if Fed hawkish: Anand Rathi

In an interview to CNBC-TV18, Priti Gupta, Director at Anand Rathi Commodities shared outlook on various commodities and how one should play them now.

Below is a verbatim transcript of the interview:

Q: Give us a word on silver and how traders are approaching that, do you see far more downside on that commodity?

A: Looking forward, there is not much that is supporting the precious metal prices. Silver, like we have always seen, is more volatile than gold therefore any movement in silver prices is always magnified.

Going forward, again with equity markets world over are performing well. As well as people are waiting and watching as to what happens at the Federal Open Market Committee (FOMC) meeting on May 22 because with the inflation figures coming out, it is still a question mark whether they will continue their asset purchase programme in the US or not. In case, there is any hawkishness about that, we will see the prices falling down even further.

Q: Are you surprised that crude keeps bouncing back to this USD 105 per barrel level because people have been predicting massive downsides there but it has still not come about?

A: I truly believe that there is nothing that supports the crude price fundamentally. However, these little geopolitical tensions in Syria and Lebanon will always give that little bit of a streak of prices running up. However, even if you look across the board, even if you look at the international energy agency figures coming out, they have all predicted slower demand in crude and energy for the coming year for 2013.

So, I still maintain that the Nymex crude will be anywhere in the range of USD 92-94 per barrel and not above that.