FxWirePro: Yellow metal plays safe haven cards as FOMC tiptoes hiking expectations to Christmas

As expected by the majority of analysts the Fed did not raise interest rates last night. As a result, it, therefore, seems to make sense that investors seeking after safe avenues of investments in Gold, evidently this precious metal is trading slightly higher this morning.

However, that does not apply when one looks at the Fed signals. The FOMC included a sentence in its statement in which it states that the reasons for a rate hike have become more convincing. And three FOMC members voted against the FOMC’s decision and in favour of a 25bp rate hike

In addition, the U.S. central bank cut the number of rate hikes it expects this year to one from two during this Christmas and projected a less aggressive rise in interest rates next year and in 2018.

Gold futures for December delivery on the Comex division of the NYME touched an intraday peak of $1,339.30 a troy ounce, the most since September 8th.

Technically, bouncing back above DMAs after testing strong support zone at 1308 on the daily chart.

Currently, experiencing resistance at 1334.539 levels.

Daily RSI has been converging upwards with every upswing ever since it has tested support from 1308 levels.

On the contrary, in a medium term perspective, the precious metal hasn't been able to hold to 13-months highs (1284.41) (trimming losses from the last couple of months). Very recently a shooting star pattern is also spotted out at 1326.985 levels that pushed below 7EMAs.

Meanwhile, you can also observe leading oscillators (RSI and stochastic) on this timeframe are converging to the dipping prices. While MACD has shown a bearish crossover but above zero territory.

Overall, major trend needs confirmation if it breaches below 21EMA or bounces back above 7EMA, upon break-out above resistance of 1334.579 levels we foresee the bullish swings for sure in short-term, keeping speculative objectives in mind we can buy one touch binary calls.