Gold is pointing north ahead of the FOMC rate decision during today's session as the US central bank is seen raising interest rates by 25 bps. Gold's price is back on to test recent highs after US Treasury yield declined by more than 4 bps during yesterday's session. However, and more importantly, the markets believe that the Fed will adopt a wait and see approach next year and that is negatively weighing on the greenback letting the yellow metal gain back its allure as a safe haven.
As expected, Gold prices climbed slowly to reach recent highs and print new ones after finding support at the $1247.5 level. The price is currently in bullish mode breaking above the $1250 level with a strong momentum. Today can be a very volatile day for the yellow metal so we might witness some aggressive moves, that is why we will be focusing on the $1259 resistance level.
Support: 1237.79 / 1234
Resistance: 1241.76 / 1247.5