Gold may move towards $1710-1720/oz: Emkay Comm

Gold has been doing well over the last few sessions. In an interview to CNBC-TV18, Ashok Mittal, chief executive officer of Emkay Commodities says there is a good breakout in gold. "Gold is well above USD 1,670-1,680 per ounce range. We expect that gold should go to about USD 1,710-1,720 per ounce in the international market," he adds.

Below is the edited transcript of his interview with CNBC-TV18's Udayan Mukherjee. Q: Gold has had a great run, how are you approaching it now? A: Technically, there is a good breakout in gold and silver. Gold is well above USD 1,670-1,680 per ounce range. We expect that gold should go to about USD 1,710-1,720 per ounce in the international market. In the domestic market, I think the upside moment on MCX should be much higher because when the prices are higher in the international markets, rupee is also weakening. We expect rupee to continue to weaken for some more time. So, buying on dips or stay long should be the strategy right now. Q: What about silver? A: Although there should be some impact of base metal, but it is going more by gold. Silver by nature is more volatile than gold. The price movement is normally higher. The price movement has happened off-late. We should see somewhere about USD 33-34 per ounce on the international market. In the Indian market, we can expect that December contract somewhere about Rs 64,000 or Rs 65,000 per kg. Q: You have got sell on crude? A: We expect crude prices to remain under pressure because enough number of inventories are available. You have inventory data coming up tomorrow. That will give more direction. As of now, the supply side is not a concern. At the same time, people are ready if there is a shortage they will release the reserves and there is no issue in terms of supply. So, we expect that prices should be actually somewhere between USD 90-92 per barrel for the Nymex crude oil. So, we see a downside of USD 4-5 per barrel on the international market. In the Indian market, you can see a downside of about Rs 200 per barrel. So, on MCX, around Rs 5,100-5,150 per barrel should be the target. Q: How to approach copper now? A: Base metal has not moved too much. But we do expect something to come about with the ECB statement which is due. We expect some positive statement. That should give some boost to euro and will overall impact dollar as a currency. If dollar weakens, that will definitely impact base metal prices. Although we are more bullish on aluminium, but at the same time copper prices should go to somewhere about 7,600-7,700 on LME. On Indian market, we expect somewhere about Rs 428-430 as a target.