Do not buy gold, silver at current level: Kunal Shah

Kunal Shah, Head of Research, Nirmal Bang Commodities, talks to ET Now on various commodities.

Gold at around 1680 would you be a buyer?

No, I will not buy gold. If there is a stability in financial markets and if this move by Europe is going to trigger stability over the global financial markets then practically and fundamentally gold should correct, so I would not be a buyer at this level and I feel that gold prices should be capped, the upside should be capped about $1700 one should not expect and those are the levels I would think about going short rather than doing any bargain hunting right now.

What would be your trading strategy for copper, it has been up 13% in the past week but looking weak today, how would you trade that metal?

Well we have seen a good bounce back. We have been expecting that and I feel that the maximum upside in copper futures on MCX should be around 375.

I do not see any major rally above those levels so 375-278 should be the very stiff resistance for copper and I do not expect a major rally beyond those points and if you look at the fundamentals, the fundamentals still remain bearish but this is a scenario where we have seen capitulation taking place in non-ferrous complex and for the time being we have seen the bottom, we have seen the lows, we are not going to go below $6500 and on up move we are not going to move above $8000.

So already if somebody has missed this rally they should start going short by 377-378 those are the levels where one should start going short rather than thinking about a major bull run from those levels so that is a strategy for copper.

What about silver considering it is at $32 levels?

I would not be a buyer in silver because it has already run up too much from almost 48500 to today we have seen almost, we have reached 54000 roughly. So 55000-56000 should be it, these are the levels where I would like to go short in silver, 55000 is good level to initiate a short trade in silver with a stop loss place above 56500 and again I would expect a downside of Rs2500-Rs3000 during the next week or may be the end of this week.