Gold Bulls Look to Push through $2,000

Gold prices surged to test the $2,000/oz level early this week before retreating ahead of the Federal Reserve's interest rate decision.

Fed policymakers opted for another 25 basis-point hike -- disappointing investors who had hoped for a pause in the wake of high-profile bank runs.

Stocks sold off in post-Fed trading on Wednesday afternoon. Precious metals markets, however, managed to record gains for the day.

Fed chairman Jerome Powell signaled that the central bank would likely hike one more time.

After months of rate increases that have ratcheted the Fed funds up from effectively zero to its current 4.75 - 5.0%, and not knowing when the tightening campaign would end, investors can finally see some light at the end of the tunnel.

Markets are even beginning to price in a likelihood of rate cuts by the end of the year. Powell denied that the Fed is expecting to have to reverse course on rates, but his hand could be forced by a worsening banking contagion and deteriorating economy.

The Fed's final capitulation on interest rates could coincide with a breakout in gold to new all-time highs.