Expect gold to test Rs 27300 today: Ventura Commodities

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

Below is a verbatim transcript of the interview: Q: How do you expect gold to move today? A: Looking at the Comex levels of last week, we expect it to move in the range of USD 1,462 per ounce and USD 1,485 per ounce that being the high and the low of the last week. However, looking at the events going forward, Wednesday and Thursday we have got the FED talking about the interest rate or the monetary easing policy, the markets are expecting something happening on that front. So, dollar has also got a slight support on the home sales as well as consumer spending but got lost on the expectations of the gross domestic product (GDP) numbers which were 2.5 percent against 3 percent expectations. So, probably I would be trying to be long on gold at the present levels expecting levels of even close to around USD 1,480-1,485 per ounce but then the weakness since the market could consolidate. For an intraday perspective, probably it is a sell. We could expect levels of close to Rs 27,080 per 10gm after testing Rs 27,300 per 10gm that could be the level, which we could sell with a stop loss of probably Rs 27,385 per 10gm to Rs 27,400 per 10gm. Q: What about crude, do you see more gains in this pullback? A: It looks like the weaker dollar has given a good support to the energy statement and in fact even the long positions are trying to get reestablished. So we see some support also out of the summer driving season. On the NYMEX front anywhere above Rs 5,060 per barrel, it is a buy i.e. above USD 94 per barrel expecting targets of close to Rs 5,120 per barrel and beyond that to Rs 5,150 per barrel maybe in dollar terms it could see levels of USD 94.80 per barrel and even beyond that to USD 95.20 per barrel, this with a stop loss of Rs 5,010 per barrel or USD 93.25 per barrel.