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. 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 at 1308 on the .
Currently, experiencing resistance at 1334.539 levels.
Daily 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 pattern is also spotted out at 1326.985 levels that pushed below 7EMAs.
Meanwhile, you can also observe leading oscillators ( and ) on this timeframe are converging to the dipping prices. While has shown a 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 swings for sure in short-term, keeping speculative objectives in mind we can buy one touch binary calls.