Gold hits 3week peak of 2,007.29 on Tuesday
Dollar hovers near 212month lows
Palladium down more than 1

Nov 22 Reuters Gold prices held firm near a 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 0.1 at 1,999.58 per ounce, as of 0613 GMT. Bullion scaled a threeweek high of 2,007.29 in the previous session.

U.S. gold futures were steady at 2,001.10.

Softer yields and the dollar have been a clear benefit for gold prices, all thanks to softer U.S. economic data that has brought forward the case for the Fed39;s first cut in 2024, City Index senior analyst Matt Simpson said.

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

The dollar rose 0.2 against its rivals, but held near more than 212month 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, the minutes of the Oct. 31Nov. 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…