Some upside still left in bullion: Venture Commodities

In an interview to CNBC-TV18, NS Ramaswamy, Head CRM & Commodities, Ventura Commodities shared his reading and outlook on gold, silver and crude.

Below is the verbatim transcript of Ramaswamy's interview with CNBC-TV18. Also Read: Gold eases on fall in ETF holdings, stimulus fears Q: How are you trading bullion today given the small pick-up that we have seen in the international prices? A: We could go on a bullish note today on an intraday, a bit of upside is still there, today we could expect that. Bullion continued to be under pressure, there is a continuing loss of interest based on the ETF's continued liquidation that one has seen in the international market although gold has not touched previous low of USD 1,180 per ounce and higher lows have been formed. It is probably indicating some selling exhaustion and that could indicate upside. This could take it to some resistance levels of close to USD 1,267 or USD 1,269 per ounce probably at those resistance levels then onwards it could again see the downward trend. So, a caution for a short-term play is to be seen, but on an intraday on MCX counter one could expect levels close to Rs 26,300 per 10gm with a stop loss of Rs 25,995 per ounce as slight upside is continuing to remain. However, on the bullion, silver equally is under selling pressure, it doesn't have any interest attraction towards an industrial metal as of now so one could see some pressure on silver but since on gold we are giving a buy call on an intraday one could expect silver to be on an upside with a stop loss of Rs 39,900 per kilogram. One could expect some upside up to Rs 40,900 or close to Rs 41,000 per kilogram. Q: Does it look like a temporary breather on crude, do you expect the prices to move higher or do you think the run is done for crude in the near term? A: The run is not done for crude because of the political turmoil which continues to remain and also the hurricane, the tropical storm, which people are speculating that it is hitting the Gulf of Mexico. So, all these speculations could take crude prices further. We are expecting close to USD 107-108 per barrel, the West Texas Intermediate (WTI). In rupee terms we are expecting levels of close to Rs 6,280 per bbl and definitely there could be some profit taking on every high but nevertheless the counter is looking bullish with a stop loss of Rs 6,170 per bbl in the MCX counter we could venture out for a buy, Rs 6,265 and Rs 6,280 could remain as an intraday target.