FxWirePro: XAU (Res. at 1200) and XAG (Res. at 16.30) to gain until FOMC meet but sliding to resume in long term

We could envisage precious metal gains for next 1M-3M despite red flag for far month contracts. We don't think prevailing price bounces to sustain in long run, see gold and silver to find strong resistance at 1200 and 16.30 levels respectively on monthly charts, we will be bullish only above convincing break on monthly charts. Both weekly and monthly oscillators signal bullish convergence to approach this level.

However, observe the price actions on confirmed continuance above or below moving average curve. Prices above this lagging indicator help us understand the ability to catch a move above or below and remain in a move and develops a sustained move.

Both precious metals are almost moving in sync with 10DMA and have remained well below this curve, which signals previous bearish trend likely to sustain but certainly cannot initiate bullish positions for long term.

Thus, both metals may rally up to above resistance levels amid speculation over the U.S. central bank's raising rates within 2015 or until sometime next year. As a result, Gold futures have been rallying to 7 week highs today amid growing expectations that the Federal Reserve will hold off on hiking interest rates until 2016.