The gold price is headed for its 4th straight day of gains today, brushing of unexpected moves from the Bank of Japan while awaiting the latest interest rate decision from the US federal Reserve later in the trading session.
At 4.30pm (GMT) the gold price was trading at $1,330 up from $1,315 in yesterday’s trading.
In a surprise move, the BOJ unexpectedly announced that they would continue their stimulus program to boost inflation which should have pressure the gold price but the yellow metal stayed resilient.
“I believe that the BoJ’s pledge to keep policy loose not only until they achieve their inflation target but until they overshoot their target on a sustainable level is the most radical thing I’ve heard from a central bank,” said Marshall Gittler, head of investment research with FX PRIMUS.
Gold is likely to receive a further boost today if ass expected the Fed decide to leave interest rates on hold which should spark a sell off of the US dollar and push traders into other investments such as gold.
"My view is we're certainly not going to see any rate increase from the Fed, and any shift in the language is going to be fairly minor, so although they'll be some volatility around the release, my guess is we'll see gold end higher rather than lower." said Tom Kendall from ICBC Standard Bank in London.