Gold eases below $2,000 mark as dollar halts slide

Gold price today news: Gold held below the key $2,000 level on Wednesday, as the dollar stabilised from its recent drop, although expectations that the US Federal Reserve has reached the end of its tightening cycle put a floor under bullion prices.

FUNDAMENTALS

* Spot gold was down 0.1 per cent at $1,996.79 per ounce, as of 0123 GMT, after hitting a three-week high of $2,007.29 in the previous session. US gold futures were also down 0.1 per cent at $1,998.80.

* The dollar held steady against its rivals after dropping to a more than 2-1/2-month low in the previous session. 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. 31-Nov. 1 gathering showed.

* Markets are widely expecting the Fed to leave rates unchanged in December and currently pricing in a nearly 60 per cent 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.

* Data on Tuesday showed US existing home sales dropped to the lowest level in more than 13 years in October as the highest mortgage rates in two decades and a dearth of houses drove buyers from the market.

* Meanwhile, benchmark US 10-year Treasury yields languished near two-month low.

* 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 on Tuesday.

* Spot silver rose 0.3 per cent to $23.79 per ounce, while platinum fell 0.3 per cent to $931.34. Palladium slipped 0.6 per cent to $1,072.35 per ounce.