Gold prices fell, on Wednesday, to less than $2,000 as the dollar stabilized after its decline over the past few days, but expectations that the US Federal Reserve had reached the end of its monetary tightening cycle limited the decline in gold prices.
Gold in spot transactions fell 0.1 percent to $1,996.79 per ounce after reaching its highest levels in three weeks to $2,007.29 in the previous session. US gold futures also fell 0.1 percent to $1,998.80.
The dollar consolidated against other major currencies after falling to its lowest levels in two and a half months in the previous session. A weaker dollar would make gold less expensive for holders of other currencies.
Federal Reserve officials agreed at their last monetary policy meeting to proceed cautiously and raise interest rates only if progress in curbing inflation slows, according to the minutes of the meeting held on October 31 and November 1.
According to CME's Fed Watch service, markets widely expect the US Federal Reserve to leave interest rates unchanged at the December meeting and that there is a close to 60 percent chance of cutting interest rates by at least 25 basis points by May.
Lower interest rates reduce the opportunity cost of holding gold.
Data showed, on Tuesday, that existing real estate sales in the United States fell to their lowest levels in more than 13 years in October, as the rise in mortgage interest over the past two decades and the scarcity of supply in the market prompted buyers to stay away from the market.
US 10-year Treasury bond yields are hovering near their lowest levels in two months, which they touched last week.
Regarding other precious metals, silver rose in spot transactions 0.3 percent to $23.79 per ounce, and the price of platinum stabilized at $931.34, while palladium fell 0.6 percent to $1,072.35.
