FXstreet.com (Barcelona) - Gold rose abruptly post FOMC meeting, exceeding Nomura short-term target of $1725. The rally has now entered a consolidation phase, with price confined between $1788 and 1753. According to Saeed Amen and Geoffrey Kendrick, FX and commodity strategists at the bank, "we think that this easing on several fronts by the FOMC should aid gold’s journey towards our existing year-end target of $2000."

Nomura strategists add: Continued loose policy by other central banks is also likely to be supportive of gold, as evidenced by the outperformance of gold against the rest of G10 since the FOMC meeting. From a tactical basis, we would look to buy on (shallow) dips, in particular around the $1750 area, with an $1850 target in the coming weeks. The lack of a larger pullback from the highs, even with speculative positioning high, suggests that short-term sentiment is quite robust. From a longer-term perspective gold investor sentiment is also strong, because of the continuing increase in gold ETF holdings."