Buy gold, silver & crude: Emkay Commodities

Ashok Mittal, CEO of Emkay Commodities spoke to CNBC-TV18 about his views on the commodity market.

Also Read: Commodity Bets: Experts bullish on gold, silver & copper

Below is the verbatim transcript of Mittal’s interview on CNBC-TV18

Q: How do you see bullion progressing during the course of the day?

A: We expect both gold and silver prices to remain firm for next few sessions. Gold has not been breaking convincingly below USD 1,700 per ounce. We believe that USD 1,705-1,710 per ounce should be a good level to buy. We can keep a stop loss below USD 1,695. We expect a move of USD 20-30 on the upside. So, we have a target of USD 1,730-1,740 per ounce.

For December contract on MCX Gold, we recommend buying at Rs 31,000 per 10 grams. Keep a stop loss of Rs 30,900 per 10 grams for targets of about Rs 31,100-31,200 per 10 grams.

Similarly, Rs 59,200 is a good level to buy silver. On the higher side we expect targets above Rs 60,000 per kilogram. So, both gold and silver are good to buy for short-term as well as for medium term.

Q: What are your views on crude?

A: We have inventory data today. We expect inventories to be less on the fundamental side. Technically, between USD 85-90 is the range for near term.

As NYMEX or entire US market is opening after two days, people would be building positions. They will not only look at inventory data but also how the payroll will happen tomorrow. So, we expect some position building to happen. Hence long positions will be built. Technically also it is a good support level to buy. So, we suggest buying crude oil on dips for targets of USD 88 per barrel in near term.

In the Indian market, we suggest buying around Rs 4,620 per barrel for upside target of about Rs 4,720 per barrel. So, from a long-term perspective, we expect crude to go to about USD 80 per barrel.