Global commodities to see selloff on strong Re: Anand Rathi

Priti Gupta, director, Anand Rathi Commodities expects to see a correction of Rs 800-1000 in silver price from current levels. "We expect a little bit of consolidation to come in the first half, but eventually somewhere down the evening it still remains to be weak and there will still be a sell," she said in an interview to CNBC-TV18.

She futher added that the strengthening rupee is likely to lead to a selloff in all global commodities, so she has a sell call on global commodities like gold, silver, copper and crude.

Below is an edited transcript of Priti Gupta’s interview on CNBC-TV18.

Q: We are seeing quite a bit of action in the silver market. Where do you see it headed today?

A: Yesterday, we saw a very big fall in silver. We expect a little bit of consolidation to come in the first half, but eventually somewhere down the evening it still remains to be weak and there will still be a sell. So, I see a drop of about Rs 800-1000 further from current levels.

Q: You are selling gold as well?

A: Yes unfortunately for the next couple of days with the strengthening rupee we see a selloff in all global commodities. So for us at Anand Rathi it is a sell on gold, silver, copper, crude, the entire bunch of international commodities.

Q: We saw a little bit of slowdown in crude yesterday. Are you expecting a bigger correction in the next couple of days?

A: Not really because the overriding factor in the crude prices is the enough supply there. In between the geopolitical issues between Israeli–Palestinian or the problem in Egypt, Syria may make it inch up somewhere near USD 93. I don’t see it going below USD 83 or above USD 93. That’s the range that it will sustain at least for the next couple of months.