Here's why Ventura Commodities advises buying bullion now

In an interview to CNBC-TV18, NS Ramaswamy of Ventura Commodities spoke about the current trend in commodities market.

Below is a verbatim transcript of the interview: Q: What is your advise on the bullion side to clients this morning? A: We feel that gold is likely to get stabilised at these levels and probably it would not be a surprise if we could see some temporary bounce back or some rebound from the present levels. Basically it has got a good support from the European purchasing managers' index (PMI) numbers and although it is a contraction but there is a trend, which is very clearly indicating improvement and that could take probably a euro currency level to be on a higher note and probably dollar could be at the present range or even could bit depreciate from these levels. All in all, we would recommend going long on gold and if we were to talk of the June contract in MCX domestic counter, we expect levels of close to Rs 26,480 per 10gm to Rs 26,550 per 10gm on an intraday basis and that could be close to around USD 1,395-1,405 per ounce. With a stop loss of possibly Rs 26,200 per 10gm, one should venture out on a temporary basis to go long on gold. Similarly on the bullion pack in silver, we recommended going long on the present levels of close to Rs 43,300 per kilogram expecting levels of close to Rs 43,800 per kilogram and beyond that to Rs 44,100 per kilogram with a stop loss of Rs 42,870 per kilogram. So temporarily a rebound is expected in bullion. Q: There was a tangible cut on West Texas Intermediate (WTI) crude prices overnight, how are you trading crude now? A: Crude has got a very lingering effect of the data, which we saw, Chinese factory activities picked up, US manufacturing is growing on a very slow pace, there are pressures on the production cut also. So we believe crude oil is a bearish trend. We could expect crude oil to be hovering around USD 91.50-92 per barrel. In fact, on an intraday basis if we were to talk of the domestic price levels, we recommend selling crude June at the level of Rs 5,250 per barrel with an expectation of Rs 5,190 per barrel and beyond that to Rs 5,165 per barrel with a stop loss of Rs 5,285 per barrel. We recommend this short position.