Symptoms that led to panic sell in gold still exist: Expert

In an interview to CNBC-TV18, Priti Gupta, Director at Anand Rathi Commodities shared the outlook on commodities market.

Below is a verbatim transcript of the interview:

Q: Are you buying the recovery on gold and silver?

A: We are. I have always been saying that the consolidation bit is a very important part of this rally. We have tried to track the intrinsic value and we know that we have seen that every time the gold is around USD 1,320 per ounce. A lot of physical buying has come in whether you look at the exchange traded fund (ETF) holdings or even the smaller markets in India.

In fact, the pipeline in the smaller markets or the physical markets in India seems to have been dried up backed by a lot of physical demand. However, I must reiterate that the cues that led to the panic selling in gold still exist and therefore that is something that one should be wary about.

Q: Do you think crude is bottomed out in the near-term or this is just a pullback rally in the last few days?

A: Again a pullback rally but there have been a few fundamental cues to that as well in terms of the stock pile numbers that came out. Also, the growth numbers will have a lot of effect going forward in the next couple of days. We are expecting some data from the US to come out tonight and that will have a bearing. This is a small pullback rally but we are very close to the fundamental levels that we had set for crude.