Gold will slow before the Fed meeting, but then it will reach the $2,000 level

The precious metal’s growth has reached more than 5% since the beginning of the year. However, according to industry experts, some consolidation is possible before the Fed meeting in February.

Edward Moya, a senior market analyst at OANDA, said he is neutral on gold until the Fed meeting on February 1. In his view, the $2,000 level is the main resistance. He said he would be surprised if the price moves above $1,950, which would be a consolidation point until the Fed meeting.

Gold has a quite optimistic overall forecast. Many analysts expect the precious metal to reach $2,000 per ounce by the end of this year, perhaps even by the end of this quarter.

Frank Cholly, a senior market strategist at RJO Futures, expressed his view that $2,000 is easy to reach by the end of the first half of this year, and possibly even earlier.

Several important indicators will be released this week, particularly the fourth-quarter U.S. GDP and the core personal consumer spending price index, which is the Fed's preferred indicator.

A decrease in the core PCE price index to an annualized 4% in December, compared to 4.7% in November, is expected.