By Gina Lee

Investing.com – Gold was down on Tuesday morning in Asia, after hitting the $2,000 mark during the previous session. The was near a two-year high and dented the safe-haven yellow metal’s appeal.

After climbing to $1.998.10 on Monday, they were down 0.2% at 11:59PM ET (3:30 AM GMT), after climbing to $1981.70. But gold gave up most of Monday’s gains as the dollar and firmed.

Matt Simpson, City Index senior market analyst told Reuters that $2,000 an ounce was a crucial level and gold closed flat the day before.

Gold has the potential to surpass the strength of the U.S. Dollar and possibly break through $2,000 within the next week.

The normal movement of the dollar in inverse relation to gold was reflected on Tuesday as it climbed to its highest level since April 2020.

The U.S. Federal Reserve may also increase its interest rates at the next few meetings. Meanwhile, yields on U.S. Treasury Notes 10-year and benchmark have fallen off of recent highs.

Stephen Innes, SPI Asset Management’s managing partner, said that “now that we have tested close to $2,000, it will be a bit more eye-opener toward more traditional gold buyers, more momentum type players with worries about recession in the U.S. also placing the gold to rise in the medium term.”

The Asia Pacific released the first thing in the morning.

And in other precious metals, and fell 0.1% while it rose 1%.