Yellow metal plays safe haven cards as FOMC tiptoes hiking hopes

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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.
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