Pressure building up on bullion: Ventura Commodities

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: There is a sharp cut on silver something that has been lying low for a while, how would you recommend trading that? A: The sell-off is likely to continue. In dollar terms, if you were to talk of gold, we expect levels of close to USD 1230-1240 per ounce in the Commodity Exchange (COMEX) level. In rupee terms, we may even further see levels of Rs 26,110 per 10gm in the gap down opening, which has already happened. On an intraday or rather on a short-term basis gold could also see levels of close to Rs 25,800 per 10gm. So that could be the pressure, which we can imagine. Adding onto the vow is the stimulus package or the scaling down operations that we are talking of in US Fed, which is further getting supportive by the consumer confidence data or the housing data. That is also building up more pressure on the bullion pack. On silver, we could expect levels of close to Rs 39,200 per kilogram on an intraday basis. It could also see levels of Rs 38,800 per kilogram in a very short span. The pressure builds up on the bullion pack. Q: What about crude, do you see it supported internationally at USD 100 per barrel or is there more downside there as well? A: On West Texas Intermediate (WTI) Nymex, we could see levels of close to USD 92.50 per barrel. A bit of sell-off could happen in crude on an intraday basis or a very short-term period. However, the fundamentals or the supportive data coming out of US could build up the demand. Going forward short-term to medium-term, it looks very good. On a very intraday perspective, crude oil in MCX counter could be a sell-off. We could expect targets of close to Rs 5,610 per barrel. With a stop loss of close to Rs 5,700 per barrel one could go, play short on a very intraday perspective. USD 92.50 per barrel could remain as a very good supportive level. On the upside, we could expect levels close to USD 96.50-97 per barrel.