Ammon News - Gold prices held firm above the key $2,000 level on Wednesday, helped by an overall weaker dollar and dip in U.S. bond yields amid expectations that the Federal Reserve had reached the end of its tightening cycle.

Spot gold was up 0.2% at $2,001.90 per ounce, as of 0747 GMT. Bullion scaled a three-week high of $2,007.29 in the previous session.

U.S. gold futures edged 0.1% higher to $2,003.90.

Gold prices held firm above the key $2,000 level on Wednesday, helped by an overall weaker dollar and dip in U.S. bond yields amid expectations that the Federal Reserve had reached the end of its tightening cycle.

Spot gold was up 0.2% at $2,001.90 per ounce, as of 0747 GMT. Bullion scaled a three-week high of $2,007.29 in the previous session.

U.S. gold futures edged 0.1% higher to $2,003.90.

However, "the move lower in the U.S. dollar looks overextended ... And with an effective 4-day weekend looming in the U.S., gold currently lacks the legs to commit fully above $2,000", he added.

The dollar rose 0.1% against its rivals, but held near the more than 2-1/2-month low touched on Tuesday.

A weaker dollar makes gold less expensive for other currency holders.

Fed officials agreed at their last policy meeting that they would proceed "carefully" and only raise interest rates if progress in controlling inflation faltered, minutes of the Oct. 31-Nov. 1 gathering showed.

Data on Tuesday showed U.S. existing home sales dropped to the lowest level in more than 13 years in October.

Markets are currently pricing in a nearly 60% chance of a rate cut of at least 25 basis points by May, according to CME's FedWatch Tool. Lower interest rates decrease the opportunity cost of holding gold.

Meanwhile, Swiss gold exports in October rose to their highest level since May as deliveries to India surged to meet demand during the country's festive season, customs data showed.

Spot silver rose 0.3% to $23.81 per ounce, while platinum fell 0.1% to $933.38. Palladium slipped 1.1% to $1,067.03.


Reuters