Buy gold, silver on dips: CommTrendz Research

In an interview to CNBC-TV18, T Gnanshekar of CommTrendz Research shared outlook on commodities.

Below is a verbatim transcript of the interview: Q: On gold what would the recommendation be? A: The market has digested all the negative factors and it is slowly showing signs of positive momentum from here. It is just that investment demand has to catch up. With the European Central Bank (ECB) rate cut, clearly investment demand could also set in soon. My sense is any dips from here could gather momentum and anywhere between Rs 26,750-26,800 per 10gm would be an ideal level to buy gold with a stop at Rs 26,600 per 10gm and a potential target of Rs 27,500 per 10gm. Q: Would the strategy be the same for silver as well, buy on every dip? A: Silver would follow gold in terms of the upside from here. Even there, Rs 44,500-44,700 per kilogram levels would be quite supportive. One can try buying silver with a stop loss at Rs 44,300 per kilogram and a potential target of Rs 45,800-46,000 per kilogram.