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Gold prices edged higher on Thursday, hovering close to a key $2,000 per ounce level, as an overall weaker dollar and lower U.S. Treasury yields buoyed demand for bullion.

FUNDAMENTALS

* Spot gold was up 0.1% at $1,992.59 per ounce, as of 0143 GMT, after hitting a three-week high of $2,007.29 on Tuesday.

* U.S. gold futures were steady at $1,993.30.

* The dollar was down 0.1% against its rivals after gains in the last two sessions and making gold less expensive for other currency holders. [USD/]

* The benchmark U.S. 10-year Treasury yields fell to a two-month low on Tuesday. [USD/]

* Data showed orders for long-lasting U.S. manufactured goods fell a more-than-expected 5.4% in October, signaling an economy cooling considerably after hot third-quarter growth.

* The number of Americans filing new claims for unemployment benefits fell more than expected last week, but that likely does not change the view that the labor market is slowing amid higher interest rates.

* U.S. Federal Reserve 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 on Tuesday.

* Traders widely expect the Fed to leave rates unchanged in December, but dialled back expectations of rate cuts in 2024, according to CME's FedWatch Tool.

* Lower interest rates decrease the opportunity cost of holding gold.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.13% to 882.28 tonnes on Wednesday from 883.43 tonnes on Tuesday. [GOL/ETF]

* Spot silver was flat at $23.63 per ounce, while platinum was little changed at $922.73. Palladium eased 0.1% to $1,056.63 per ounce.

DATA/EVENTS (GMT)0745 France Business Climate Mfg, Overall Nov

0815 France HCOB Mfg, Serv, Comp Flash PMIs Nov

0830 Germany HCOB Mfg, Serv, Comp Flash PMIs Nov

0900 EU HCOB Mfg, Serv, Comp Flash PMIs Nov

0930 UK Flash Comp, Mfg, Serv PMIs Nov