As the Federal Reserve is scheduled to announce its monetary policy amid the lingering banking crisis, analysts say gold prices have more potential to rise and possibly break all-time highs.

Tina Teng from financial services company CMC Markets told CNBC she expects the yellow metal to trade between $2,500 to $2,600 an ounce. “A sooner Fed pivot on rate hikes will likely cause another gold price surge due to a potential further decline in the U.S. dollar and bond yields,” she said.

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Price Action: Spot gold was trading at $1,939 per ounce at the time of writing. On Monday, it breached the $2,000 mark to hit its highest since March 2022. Gold’s all-time high stands at $2,075 in August 2020, the report said citing Refinitiv data.

The SPDR Gold Trust GLD and the iShares Gold Trust IAU have gained over 6% in the last month.

U.S. markets ended in the green on Tuesday as fears over a liquidity crunch in the banking system ebbed and focus shifted to the Federal Reserve policy meeting where the bulk of the market participants expect the central bank to raise rates by 25 bps.

Expert Take: CEO Randy Smallwood of Wheaton Precious Metals said continued central bank buying of gold bodes well for long-term prices. Smallwood estimates gold prices to touch $2,500.

Craig Erlam, a senior market analyst at OANDA, said gold might be in for a strong performance in the coming months. “The stars appear to be aligning for gold which could see it break new highs before long,” he said.

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