Gold prices heading for a correction now: Angel Broking

Views of Mr. Prathamesh Mallya (Chief Analyst- Non-Agri Commodities & Currencies, Angel Broking):

"Trump policies with regards to immigration and infra spending will take a back seat now as the positive move has already been done with rally in gold prices by around more than 10 percent since the start of the year. Market focus will now be on the FOMC meeting scheduled on 14-15th of March, the probability of rate hike stands at around more than 80 percent according to the FED Fund Futures. Also, geo-political tensions emanating from North Korea will not have any impact on gold for the time being.

Besides, recent comments from Janet Yellen talked about the possibility of rate hike as soon as possible which will exert downside pressure on gold. We expect gold prices (CMP:$1227/oz) in the international markets to move down lower towards $1170 while MCX gold prices (CMP: 29000/10 gms) will move down lower towards Rs.28000 mark from a month perspective."

Source : Equity Bulls

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