Gold prices rose in European trade off four-week lows on track for the third profit in four days as the dollar index declined against major rivals. 

Calm trading dominates the market due to the ongoing bank holiday in the US. 

Prices Today

Gold prices rose 0.4% to $1,846 an ounce, after losing 1% on Friday, the first loss in three days as the dollar recoups against major rivals. 

Gold prices lost 1.75% last week, the second weekly loss in a row, and the largest  since May. 

The Dollar

The dollar index fell 0.4% on Monday on track for the third loss in the last four sessions on active profit-taking off 20-year highs against major rivals. 

No analysts doubt another 0.75% rate hike by the Federal Reserve in July, in turn dampening demand on the greenback. 

A holiday

The US markets is closed for a public holiday today for the Independence Day, leading to some shortage of liquidity. 

The SPDR 

Gold holdings at the SPDR Gold Trust rose 11.6 tones, the largest increase since March 1, to a total of 1,075 tones, the highest since May 9. 

Euro rose in European trade off five-week lows against dollar ahead of ECB President Christine Lagarde's testimony ahead of Parliament. 

Lagarde's remarks will offer clues on the future of monetary policies in the euro zone, with the ECB expected to hike rates by 25 basis points in July. 

EUR/USD rose 0.6% to 1.0543, after losing 0.5% on Friday, the first loss in four days off five-week lows at 1.0359. 

Euro fell 0.25% against dollar last week, the third weekly loss in a row amid divergence policies between Europe and the US.

Lagarde 

ECB President Christine Lagarde is testifying ahead of the European Parliament later today, expected to offer clues on the future of interest rates and European policies. 

Now markets expect the ECB to hike rates by 25 basis points in July, and another 25 basis points in September to control inflation. 

The Dollar

The dollar index fell 0.4% on Monday on track for the third loss in the last four sessions on active profit-taking off 20-year highs against major rivals. 

No analysts doubt another 0.75% rate hike by the Federal Reserve in July, in turn dampening demand on the greenback. 

Oil futures declined nearly 1% in Asian trade off March 9 highs as the dollar index slipped from December 2002 highs.

Chinese central bank maintained rates unchanged as the economy continues to improve from the Covid 19 closures, while traders await US data later today.

As 0f 05:30 GMT, US crude futures due in July fell 0.83% to $107.86 a barrel, as Brent futures due in August fell 0.68% to $113.03 a barrel, as the dollar index fell 0.28% to 104.41.

China's central bank maintained 1-year rates at 3.7%, and five-year rates at 4.45%, intended for mortgages, as expected.

Latest World Health Organization data showed Covid 19 infections rose to over 535 million cases, with the death toll mounting to 6.314 million so far.

Libya's energy minister Muhammad Ouna said total Libyan production hit 700 thousand bpd, up from just 150 thousand bpd last week amid continued struggles with rebels.

Otherwise, OPEC General Secretary Muhammed Barkindo asserted the organization is trying to maintain supplies, and opened the door for extending the OPEC + deal with Russia to beyond this year, depending on market conditions.

On the Ukrainian crisis, the Kremlin said the negotiations with Ukraine aren't going very well, especially after aggressive remarks by the Ukrainian government recently on the Crimean Bridge.

Ukrainian government asserted a goal to take back the Crimean Bridge once it acquire weaponry from the US and Europe.

Baker Hughes data showed US oil rigs rose by 4 rigs to 584 rigs last week, the second such increase in a row to March 2020 highs.

Oil rigs rose in May for the 22nd month in  row, the longest such streak ever, while US output rose 100 thousand bpd last week to a total of 12 million bpd, the highest since April 2020.

US stock indices declined on Friday as markets assess policy decisions by global central banks.

Bank of England voted to hike rates by 25 basis points yesterday to 1.25%.

ECB policymakers hinted at using multiple more rate hikes to control runaway inflation in upcoming months.

The Federal Reserve decided to hike rates by 75 basis points to 1.75%, the highest such increase since 1994.

Dow Jones fell 0.2% as of 14:21 GMT to 29,855, while S&P 500 declined 0.1% to 3,663, as NASDAQ rose 0.5% to 10,702.