Rupee's pain is bullion's gain; buy gold: Kishore Narne

In an interview to CNBC-TV18, commodity expert, Kishore Narne, Associate Director, Head-Commodity & Currency, Motilal Oswal Commodity Broker shared his reading and outlook on crude and gold.

Sell equity & bond, hold cash as more gloom ahead: Faber Below is the verbatim transcript of Narne's interview with CNBC-TV18. Q: What kind of prices is crude headed towards and how are people trading it? A: I think due to the situation turning wilder in the Middle East, crude continues to be on the strong note and also the positive jobs data and overall improvement in the macroeconomic numbers is also driving this commodity. At this point of time there is some more steam left in crude prices so one can continue to buy with Rs 6,285 per bbl as stop loss and look at targets close to Rs 6,440 on MCX near month. Q: What are you doing on gold which has come off quite significantly? A: Gold is still in a pullback kind of mode despite dollar being stronger gold has been trading in a range in international market. On domestic front the rupee weakness has been supporting gold. Therefore, as the rupee has broken down previous support levels, one can expect some more depreciation of rupee in the short-term which could be supportive for both gold and silver. At this point of time one can buy gold with stop loss of Rs 25,900 per 10gm and intraday targets could be around Rs 26,200-26,250 per 10gm kind of levels but potentially in short-term Rs 26,400-26,450 per 10gm could be on the cards.