Gold prices fell on Thursday, deepening losses for the third straight day, weighed down by the rising US dollar and ahead of the release of key US inflation data.

Gold prices fell more than 0.6% to $1,876.52 an ounce, after opening at $1,888.77, and a high at $1,889.35.

Gold lost 0.2% yesterday, in the second straight daily loss, due to weak safe haven demand, despite a retreat in the US Treasury bond yields.

The dollar index rose 0.1% today, which weighs down on demand for dollar denominated metals.

Investors expect US inflation data to lead to policy tightening by the Fed early next year by reducing bond purchases. 

At 12:30 GMT, the US consumer price index is expected up by 4.7% y/y in May from 4.2% in April, and the monthly reading is expected up 0.4% from 0.8%.

Gold stocks at the SPDR ETF rose 5.83 metric tonnes yesterday, the largest daily increase since May 21, with the total at 1,043.16 metric tonnes.

Euro fell in European trade against dollar away from week highs before major US inflation data and the European Central Bank's policy decisions. 

EUR/USD fell 0.2% to 1.2153, with an intraday high at 1.2180, after closing up 0.1% yesterday, erasing earlier gains on profit-taking away from week highs at 1.2218.

The dollar index rose over 0.1% on Thursday on track for the second profit in three days against a basket of major rivals. 

Investors expect US inflation data to lead to policy tightening by the Fed early next year by reducing bond purchases. 

The ECB is wrapping up its policy meeting today as Covid 19 vaccination efforts accelerate in Europe and with most European governments relaxing shutdown restrictions. 

ECB President Christine Lagarde is expected to talk following the meeting at 12:30 GMT, with the ECB expected to maintain currency policy unchanged but provide clues on future steps. 

Silver prices rose on Wednesday, as the US dollar steadied against most of its peers ahead of the major data releases.

The US 10-year Treasury yield fell today below 1.5% for the first time since May 7.

Markets await US inflation data tomorrow, which would set estimates correctly for policy tightening by the Fed in the next few years, amid forecasts for the US consumer price index by 0.4%.

The weekly jobless claims will also be released, which is considered a preliminary gauge of the labor market.

The dollar index rose against a basket of currencies by less than 0.1% to 90.1 points as of 19:22 GMT, after it hit a high of 90.1 points and a low of 89.8 points.

Silver July futures rose 1% or 27 cents, and closed at $28 an ounce.

The major US stock indices closed lower on Wednesday, as Dow Jones fell for the third straight day, ahead of key US inflation data.

The US 10-year Treasury yield fell today below 1.5% for the first time since May 7.

Markets await US inflation data tomorrow, which would set estimates correctly for policy tightening by the Fed in the next few years, amid forecasts for the US consumer price index by 0.4%.

The weekly jobless claims will also be released, which is considered a preliminary gauge of the labor mark

To the oil market, WTI crude July futures fell 0.1% or 9 cents, and closed at $69.96 a barrel, after hitting a high of $70.6 and a low of $69.4.

Brent August futures held $72.22 a barrel, after hitting a high of $72.8 and a low of $71.8.

As for stocks, Dow Jones fell 0.4% or 152 points, and closed at 34,447, with a day high of 34,654, and a low of 34,439.

S&P 500 fell 0.2% or 7 points to 4,219, after hitting a high of 4,237 and a low of 4,218.

Nasdaq fell 0.1% or 13 points to 13,911, with a high of 14,003 and a low of 13,906.