We use hard x-ray photoemission to resolve a controversial issue regarding the mechanism for the formation of quasicrystalline solids, i.e., the existence of a pseudogap at the Fermi level. Our data from icosahedral fivefold Al-Pd-Mn and Al-Cu-Fe quasicrystals demonstrate the presence of a pseudogap, which is not observed in surface sensitive low energy photoemission because the spectrum is affected by a metallic phase near the surface. In contrast to Al-Pd-Mn, we find that in Al-Cu-Fe the pseudogap is fully formed; i.e., the density of states reaches zero at EF indicating that it is close to the metal-insulator phase boundary.