Gold may test Rs 29k/10gm in by June; buy on dips: Expert

T Gnanasekar of CommTrendz expects gold to rise to Rs 29,000 per 10 gm level or if rupee remains in the range of 50.25 - 51 per USD. He sees this happening in three months. So, the trading strategy for gold, according to him is to buy on dips.

"We think at Rs 28,200-28,250 per 10 gm levels it could hold support. It could be headed to Rs 28,600 to Rs 28,700 on the upside and maybe hold there for a day or two," he told CNBC-TV18. Below is the edited transcript of the interview. Also watch the accompanying video. Q: What is an intraday trade on gold but more importantly what is the positional trade on gold or even a quarterly trade? A: Intraday trade on gold would be buy-on-dips for today and going forward. We think Rs 28,200-28,250 per 10 gm levels could hold support. It could be headed to Rs 28,600 to Rs 28,700 on the upside and maybe hold it for a day or two. Essentially, the way risk appetite is building in and the way Fed is indicated that it would continue with the same monetary policy, our sense is that risk appetite would return. We could see some movement on the upside for gold. If rupee were to be in range between 50.25 per USD and 51 per USD, we see gold rising towards Rs 29,000 per 10 gm levels on the upside or even higher. This is possible in three month period. Q: Risk-on and good data from the US has kind of snapped the relation between data and gold strength. Now we are seeing dollar gaining in strength as we get good data from the US. Do you think the ferocious rally that we saw in gold is over? Will it be more incremental or will it even dip and reverse? A: What we cannot expect now is a rally which we saw earlier where it is bought as a safe haven against the US economic problems. It would be volatile and it would be a gradual rise. It also could be met with good amount of selling if we see some extremely good economic data which could come. Q: Rupee is around 50.84 per USD, there has been lot of volatility? What is your strategy on crude? A: So for rupee has not played a major role as far as crude oil is concerned although it does affect the price to some extent. Mostly, the affect is felt in gold and less in silver, crude, copper. Our sense is that yesterday