Gold is again on its way to 2,000 USD

Gold rose on Monday on a weaker US dollar, and expectations that the US Federal Reserve will repeat its numb monetary stance later this week helped reinvigorate investor interest in precious metals. Spot gold rose nearly 1.0% to $ 1,959.44 an ounce through 11:15 a.m. EDT - its highest level in nearly two weeks and the largest increase over that period. US gold futures contracts also rose 1.0% to $ 1,969.20 an ounce. "Gold is firm on the foundation that the Fed might adopt another dovish message regarding the average inflation target," Michael Hewson, senior market analyst at CMC Markets UK, said in a Reuters interview. "If you are to have an average inflation target policy, you need to explain in detail how you are going to get that particular outcome," added Hewson. Meanwhile, the dollar weakened - with the US dollar index falling 0.3% - adding to the appeal of gold to investors holding other currencies ahead of the Fed's policy decision on Wednesday. "If inflation forecasts stay at 2% or below, it could provide a tailwind for gold as the zero-interest metal thrives in a low-interest environment," said FXTM analyst Lukman Otunuga. Market participants are also waiting for the Bank of Japan and the Bank of England to make political decisions on Thursday. UK-based drug maker AstraZeneca resumed its Phase III trial over the weekend, reviving hopes for a potential Covid-19 vaccine and boosting global markets. "Gold is likely to remain trapped in a range in the near future as the opposing forces pushing the commodity with strong headwinds in the form of rising vaccine hopes and positive economic data from the major economies hit the market," Otunuga said.