Expect a bounce-back in commodity prices on back of weak dollar index: Nirmal Bang Commodities’ Kunal Shah

Kunal Shah of Nirmal Bang Commodities on Tuesday said that weakness in dollar index can lead to a bounce back in commodity prices.

“Volatility is the theme right now and we continue to see that. I believe that the dollar index can marginally weaken and that can lead to some bounce back in commodity prices, especially in bullion,” he said in an interview to CNBC-TV18.

Shah expects to see some short covering to happen in gold and silver. “We have seen gold and silver constantly under pressure since last 10 days. So we can see some bit of short covering in gold and silver, especially silver. You can go long around Rs 65,800 with upside target of Rs 66,500-66,600,” he said.