April 4 (Reuters) - Gold extended gains on Tuesday and crossed the key $2,000 level as the dollar and yields fell, while weaker U.S. economic data emboldened bets for slower rate hikes despite mounting concerns over oil-led inflation.
Spot gold climbed 1.7% to $2,017.89 per ounce by 11:30 a.m. EDT (15:30 GMT) after reaching its highest since March 9, 2022 of $2,024.79 earlier. U.S. gold futures gained 1.8% to $2,036.20.
Tracking gold's gains, silver jumped 3.2% to $24.75 per ounce, platinum rose 2.7% to $1,011.95, while palladium was up 0.6% at $1,468.52.
"We're in this very positive backdrop for gold in which we have the slowing of economic data along with inflationary pressures remaining elevated," said David Meger, director of metals trading at High Ridge Futures.
Burnishing gold's appeal, especially amongst traders holding other currencies, the dollar added to its losses after data showed U.S. job openings in February dropped to a near two-year low while factory orders also dipped.
A surge in oil prices this week after a surprise output cut by OPEC+ has helped zero-yield gold, traditionally considered the preferred inflation hedge, shake off the usual pressure from the likelihood of interest rate hikes that could be implemented to rein in rising price pressures.
"From a technical perspective, the gold price is likely to remain strong and stabilize at its current level or even higher. The $2,050 mark could act as an important resistance level, and if breached, prices could quickly soar towards its all-time high," said Alexander Zumpfe, a precious metals dealer at Heraeus.
Markets now see about a 40% chance of the Federal Reserve hiking rates by a quarter basis point in May, with a roughly 60% chance of a pause.
But Han Tan, chief market analyst at Exinity, said more rate hikes could cause gold to unwind some of its recent gains.
