In line with analysts' predictions, the price of gold has finally managed to reach the $2,000 level after the rising pattern was successfully maintained until yesterday.
Price movements are observed on the XAU/USD chart which measures the value of gold against the US dollar with continued price increases since last week.
The price of gold managed to soar at the beginning of the New York session yesterday, breaking through the 2000.00 level before the minutes of the FOMC meeting that were examined early this morning made the price retreat back below that important level.
The US dollar recovered slightly as members of the meeting are still considering raising interest rates if the situation calls for it, but in the near future the monetary policy of the Federal Reserve (Fed) is expected to be maintained first.
After hovering around the 1996.00 level, the price of gold returned to display a slight increase above the 2000.00 level at the beginning of the European session today (Wednesday).
The price reaction at the important zone of 2000.00 will still be closely watched by those who will evaluate the direction of further price movements for gold.
If the price shows a strong bounce, a move higher is expected to lead up to the highs around 2030.00.
This would make gold the highest it has been since trading last May.
However, if the price of gold fails to hold above the 2000.00 zone, watch out for signs of a further price drop.
A price break below the Moving Average 50 (MA50) support level on the 1-hour time frame on the chart will be an early indication of a bearish trend change.
The price drop will pass the 1980.00 zone before continuing towards around 1920.00 which was the focus before.
