Crude prices should move up as demand increases: Sushil Sinha

In an interview with ET Now, Sushil Sinha, Country Head, Karvy Comtrade Ltd, gives his outlook on commodities.

ET Now: Let us start with gold first... we have seen gold coming off all-time highs of 1610 to around 1590. At this point in time, are you looking at further declines?

Sushil Sinha: Yes, I think at this higher level, people are taking it as a profit and naturally it is going down. Some correction I guess it should happen and further selling at higher level should be recommended for a day and today even it is Friday and I think there will be correction. The major reason for that there is again a confusion coming up basically from US side and European side for the base metal, precious metal prices so whatever decision comes out from the US side that is going to give a direction but I think that for the day we should be on the selling side and selling around 22980, 22940, 22960 level that would be quite good.

ET Now: How would you want to trade the crude prices right now just about 50 cents away from that psychological $100 mark, do you think it has enough steam to touch that one?

Sushil Sinha: I assume that this crude prices this time should cross 100 though moving in a band but this band should rather move now from $90 to $100 so it should go to 98 to 107. So I think that better data coming out from Eurozone and overall impact on this driving season I think price should move up and demand moving ahead. I guess it should cross $102 by the end of the day.

ET Now: Sugar has been in news quite a bit about that buzz on decontrol, there is buzz on more exports as well and that seems to be really supporting, would you buy on these news information?

Sushil Sinha: Yes, this is going to be a news because this time sugar we are having a surplus so we are going to export it as per the decision or the news information received so we should definitely go for buying at the lower level. So to at 3020 level that could be good for buying for the sugar.