Gold will keep trading in the range of 22200-22800: Biren Vakil

In a chat with ET Now, Biren Vakil, Commodity Consultant, Paradigm Commodity Advisors, gives his outlook on commodity space.

ET Now: While there are so many uncertainties in the international markets, we have not seen gold really play the safe haven commodity?

Biren Vakil: Right now dollar and yen are attracting the flows, especially since Bernanke has declined about QE3, dollar is witnessing a counterintuitive relief rally. Gold for the time being has taken a backseat because of a strong sell off in crude oil as well as commodity as a whole.

ET Now: Would you be a buyer in gold at these current levels? Do you see the levels that we saw yesterday at around 1560-1570 come back into the markets? Would you continue to feel that there could be some more profit taking?

Biren Vakil: We may see a little bit sell off. Broadly speaking it is a 3% trading volatility from the base value since in last couple of months, gold has been trading between 22200 and upside 22800, so it is a well established range and I do not see break off range as of now. It will continue to break for say couple of weeks.

ET Now: How would you also want to trade the base metal prices?

Biren Vakil: Here I am fully focussed on copper, which has well established swing of 400-410-412. Here buying area is 402, profit taking 410, stop loss 396. On the upside, 410 is a selling area, 415 stop again and 403 is profit taking. This range is working fine since last two months and until I see a convincing breakout, I would continue to prefer both side of the swing trade.