Gold (GC=F) was trading above $2,000 per ounce Monday afternoon as investors poured into the precious metal seen as a safe haven during times of turmoil.

The rally is a continuation of Friday’s price action, when the yellow metal surpassed the psychological level of $2,000 for the first time since May amid the Israel-Hamas war in the Middle East and a highly anticipated Federal Reserve meeting this week.

“I started out this year thinking that gold could go to $3,000 an ounce. I still think it’s very possible. Especially given everything that’s going on,” Michele Schneider, partner and director of trading education and research at MarketGauge.com, told Yahoo Finance, noting that gold has held up "in the face of a stable dollar and higher rates."

Typically a strong greenback puts pressure on precious metal prices, which are denominated in US dollars. The US dollar index (DX-Y.NYB) has rallied about 6% since early July.

A higher interest rate environment means investors can earn an attractive return by putting their money in US Treasuries rather than gold.

The markets are anticipating that the Federal Reserve will leave rates unchanged when it meets this week, yet continue on its path of "higher for longer." Some strategists are cautioning against piling into the precious metal now.

But gold’s momentum may be on the side of investors for now, especially if prices reach their breakout level of $2,050, says MarketGauge’s Schneider.

Investors should know when to get in and out of the trade though.

“What we’ve seen in gold, and I think this is very important — it’s been a Buy when it looks terrible and it’s been a Sell when it looks amazing,” she said. “Which means if it continues to go up and buyers come in at the top, then you know it’s going parabolic.”

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre.

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