GOLD Could Rally Toward $2,000 on Fed's Dovish Language

The price of gold is currently below $1,950 and may see a bullish trend as XAU/USD bulls may make one last attempt to rise before the Federal Reserve meets. Mehta suggests that for any recovery to occur, gold would need to be accepted above the psychological level of $1,950 and reach the previous resistance level of $1,960. If the Federal Reserve adopts a dovish outlook, it could cause gold buyers to push the price back to $2,000 and potentially even higher. However, if the previous day's low of $1,935 is breached, selling interest may be reinforced, leading to a potential drop towards the $1,900 level. Should Fed Chairman Jerome Powell adopt a hawkish stance, gold's bullish commitments may be challenged, and the price could fall to the March 17 low of $1,918 before potentially dropping further to the $1,900 round level.

"The anticipation of a 25bps increase in the Federal Funds Rate by the Fed will likely hurt the price of gold . Gold is often seen as a safe-haven asset, and when interest rates rise, it becomes less attractive to investors seeking higher yields."