Gold to touch USD 1425/oz, buy on dips: IIFL

In an interview to CNBC-TV18, Tarang Bhanushali, IIFL shared his reading and outlook on crude and gold.

Below is the verbatim transcript of Bhanushali's interview with CNBC-TV18. Q: Extremely volatile moves in crude, below USD 100 per bbl and back to Rs 102 per. How are you trading that commodity? A: We believe that USD 100 is the level for Brent crude where it would find some strong support. Going below USD 100 per bbl mark would be difficult in the near term. We expect crude prices to be range bound in the near term and for Brent crude USD 99 per bbl to USD 106 per bbl is the range we are looking at. Since it is at the lower bottom, we would be net buyers keeping a stop loss of USD 99 per bbl for Brent crude. We believe for Nymex USD 91-92 per bbl levels is the level where one should enter on the long side. The downside looks limited over there. Therefore, we are net long in both Brent and crude at the current levels. Gold won't sink or spike, see crude at $90-110: JP Morgan Q: What are you doing with gold and silver today? A: Gold and silver has found some buying largely on the back of correction mode in the dollar index. The dollar index hit a high of 84.5 and then has declined to 82.5. We believe the corrective mode would last for a day or two and head towards 81.5-82 levels wherein it would find some support which would lead to some buying. Therefore, we expect gold at USD 1,425 per ounce in the international market maybe some correction in the domestic market should be used as an opportunity to buy for a day or two. So, we are net long in precious metal too for the day.