With the FOMC meeting fast approaching, investors continue to face increasingly turbulent markets with risks.
However, gold gave happy news for its investors when the value of the yellow metal managed to jump on Tuesday's trading yesterday past the important level of $2,000.
The factor seen supporting gold's surge is a further decline in the 10-year US Treasury yield from 3.60%.
The US dollar has moved weakly in the New York session yesterday following the reaction to the release of JOLTS job opening data in the US for March.
This has given room for gold to rise, but the risk of another fall in prices remains with uncertainty on the reaction of the FOMC meeting later.
On the XAU/USD price chart, which measures the value of gold against the US dollar, the price rose yesterday past the 2000.00 level after initially leveling off around 1980.00.
A bullish signal is evaluated first by the price movement above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart.
The price increase until the end of the New York session has reached 2019.00 and the price is flat around that until trading continues into the Asian and European sessions today (Wednesday).
A higher rise is expected to continue towards the 2030.00 zone before continuing further ascent to the 2050.00 zone.
The 2048.00 level was reached 3 weeks ago, and is the highest level recorded since March 2022.
But the target to reach that height may not be achieved if the price of gold starts to show signs of plunging.
The impact of the FOMC meeting strengthening the US dollar could push the price back below the 2000.00 level or even further, setting new lows.
A further drop in the price could lead to around 1950.00 and if this important zone is also broken, the price could reach up to 1900.00.
