After Breaking $2,000, Where Will the Gold Price Go?


 The continued strengthening of gold prices pushed the yellow metal past $2,000 per ounce earlier in the week.

This was supported by market concerns over the global banking crisis which caused investors to turn to safer assets such as gold.

Also supporting the strengthening of the price is the weakness of the US dollar due to reduced expectations of interest rate hikes by the Federal Reserve (Fed).

The FOMC policy meeting this week will answer the questions of investors who are still puzzled about the decision the central bank will take.

The Fed was initially expected to raise interest rates by 50 basis points, now it is forecast to implement only a 25 basis point increase or leave it unchanged.

In the Asian session, spot gold traded hovering around $1,980 an ounce, down slightly from the one-year high it hit on Monday, at $2,009 an ounce.