Spot gold prices are trading modestly higher Thursday, after the U.S. Federal Reserve’s meeting revealed no real surprises. Fed chairman Ben Bernanke said U.S. monetary policy was “more or less in the right place” even though the central bank would not hesitate to unleash another wave of bond purchases if the economy were to additionally weaken. Spot gold prices initially weakened after the FOMC announcement, after the Federal Reserve had obviously disappointed traders who had banked on another round of asset purchases, or at least a strong hint that there may be one. Prices knee-jerked off to a low of $1625.38, before reversing higher in volatile price action to $1646.50 as investors digested the press conference. Prices have remained buoyant during Asian trading hours, with the market currently trading $1649.42 up $5.79 on the session. Traders now perceive the market in a range until a fresh catalyst comes along to increase volatility. Physical demand has fallen recently, especially in India, so no significant support is seen to support prices in the short-term.
EasyForexNews Research Team