GOLD - Trading strategy before PMI on 24/7

World gold prices surged to their highest in more than two months early last week, creating solid optimism in the market. However, some analysts are also warning investors not to "jump in" before the US Federal Reserve (Fed) announces interest rate decision in the middle of this week.

The latest Kitco News gold survey shows that retail investors expect gold to return to the key $2,000/ounce price zone despite the Fed almost certain to raise interest rates by 25 basis points at this month's meeting. Meanwhile, market analysts, although optimistic, remain more cautious.

Looking ahead, the Fed's monetary policy meeting on Wednesday is the market's most awaited event this week. The nearest markets are certain that this feeder will continue to raise bank rates by 25 basis points. Some analysts believe that the Fed's rate hike will support the dollar and put pressure on gold.