High purity hydrogen, 97-99 vol.%, with CO at just ppm levels was obtained in a fixed bed of iron oxide employing the steam-iron cycle operation with reduction at 823K and oxidation in a steam-$N_2$ mixture at 773K TGA experiments indicated that temperature of the reduction step as well as its duration are important for preventing carbon build-up in iron and the intrusion of $CO_2$ into the hydrogen product. At a reduction temperature of 823K, oxide reduction by $H_2$ was considerably faster than reduction by CO. If the length of the reduction step exceeds optimal value, low levels of methane gas appeared in the off-gas. Furthermore, with longer durations of the reduction step and CO levels in the reducing gas greater than 10 vol.%, carbidization of the iron and/or carbon deposition in the bed exhibited the increasing pressure drop over the bed, eventually rendering the reactor inoperable. Reduction using a reducing gas containing 10 vol.% CO and a optimal reduction duration gave constant $H_2$ flow rates and off-gas composition over 10 redox reaction cycles.