Spot gold was 0.5 per cent higher at $2,012.34 per ounce, after hitting its highest since May 16, while U.S. gold futures settled 0.5 per cent higher at $2012.4

Gold touched a six-month peak on Monday as a weaker dollar and expectations of a pause in the Fed’s monetary tightening helped bullion consolidate above the key $2,000 an ounce level.

Spot gold was 0.5 per cent higher at $2,012.34 per ounce by 2001 GMT, after hitting its highest since May 16. U.S. gold futures settled 0.5 per cent higher at $2012.4.

The dollar stayed near a three-month low, making greenback-priced gold less expensive for holders of other currencies.

Gold is likely to trade near $2,000 for a little bit until we get some more information from the Fed on its plan on interest rates, said Bob Haberkorn, senior market strategist at RJO Futures.

Gold will trade higher if they are done with rate hikes for the time being, Haberkorn said.

Traders widely expect the Fed to hold rates in December, while pricing in around a 50-50 probability of easing in May next year, according to CME’s FedWatch Tool.

Lower interest rates reduce the opportunity cost of holding non-interest-bearing assets, often boosting gold prices.

Investors’ attention will be on the U.S. Q3 GDP figures on Wednesday and the PCE price index due on Thursday, the Fed’s preferred inflation gauge.

Economic figures coming out of the U.S. this week, both on the growth and inflation front, will make or break a case for whether gold remains above $2,000, said Kyle Rodda, a financial market analyst at Capital.com.

On the physical front, data showed that top consumer China’s net gold imports via Hong Kong dropped for a second successive month in October as a patchy economic recovery weighed on demand in the key bullion market.