In an interview to CNBC-TV18, Kishore Narne, Associate Director, Head - Commodity & Currency, Motilal Oswal Commodity Broker shared his reading and outlook on gold and silver.
Also Read: Gold rises to 1-month high on weaker US dollar Below is the verbatim transcript of Narne's interview with CNBC-TV18. Q: How is it moving for gold market? Are people beginning to get long on that commodity again? A: After Bernanke has made it clear that the liquidity scenario will prevail and they are not in a hurry to unwind the quantitative easing (QE) three, gold is taking a cue from there. In global market, gold has now breached the technical levels and probably now headed towards another USD 30-40 upside from here. We are suggesting buying in domestic market on dips towards Rs 26,700 per 10gm levels; Rs 26,550 per 10gm could be used as a stop loss and on higher side, one can look at targets close to Rs 27,300 per 10gm or Rs 27,500 per 10gm in the next couple of days. Q: What about silver, which also had a pullback? A: I think both are similar in nature. Silver has been one of the beaten down commodity so probably there is much more strength in silver. However, industrial metals are not looking great at this point of time so silver's underperformance would continue to be there for sometime but the weakness in copper would continue to hurt silver. Therefore, irrespective of that silver should continue to rally but slightly underperformed gold at this point of time.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
