The gold price has been consolidating in the vicinity of $1,777.80/oz on Thursday, April 29, but is still clearly rangebound at $1,767-1,793. Meanwhile, the overall picture looks buyer-friendly, although investors are in no hurry to buy into the precious metal.
At the end of its April meeting, the FOMC left all its monetary policy settings unchanged, without dropping any hints or even making a single innuendo about tapering. This weakened the position of the US dollar. When the dollar decreases, the value of gold usually increases as prices move in inverse correlation. But not this time around.
Perhaps the reason for this is upbeat market sentiment, which does not imply interest in safe haven assets, including gold, at this point. That said, we could still see gold test the $1,800/oz level as long as the external news flow does not prevent such a move.