Gold prices fell on Tuesday, deepening losses for the third straight day, amid concerns over demand in India and China, but the yellow metal remains above the $1800/oz. barrier so far as the US dollar continues to fall against a majority of rivals.

Gold prices fell 0.3% to $1,808.21 an ounce, after opening at $1,813.07, and hit a high at $1,813.96.

Gold closed lower by less than 0.1% yesterday, in the second straight daily loss, as correction and profit-taking from a 2-week high of $1,832.66 continued.

Demand for gold slumped last week in India, as higher prices slowed retail sales, and in China sales were largely lackluster.

The dollar index fell 0.1% today, falling for the second straight day against a basket of its peers.

Data showed that the US manufacturing sector has slowed down during July, which renewed concerns over the economic recovery from the coronavirus pandemic, and the need for more fiscal and monetary support.

Federal Reserve stressed last week that it would continue to support the economy until the Fed's inflation and employment targets are reached, and Fed Chairman Jerome Powell said "we’re some way away from having had substantial further progress toward the maximum employment goal."

Gold stocks at the SPDR ETF fell 1.75 metric tonnes yesterday, with the total at the lowest level since July 26 of 1,029.71 metric tonnes.

Oil prices rose on Tuesday, rebounding from the 2-week low hit yesterday, thanks to expectations of a drop in the US crude inventories, but the rebound is being curbed by concerns over a slowdown in global industrial activities during July, and OPEC production hike during July.

US crude rose 0.5% to $71.92, after opening at $71.56, and hit a day low at $71.00, and Brent crude rose 0.7% to $73.52, after opening at $73.04, and hit a day low at $72.58.

US crude lost 3.0% yesterday, and hit a 2-week low at $70.58, and Brent crude futures fell 2.7%, and hit the the lowest level since July 22 at $72.34, in the second straight daily loss.

The American Petroleum Institute will release its preliminary report on the US crude inventories later today, and the US Energy Information Administration will release the official data on Wednesday.

US inventories fell to pre-pandemic levels last week, in a positive sign of improving demand, especially after easing lockdown restrictions.

Data showed that Chinese factory activity and the US manufacturing sector slowed down during July, which renewed concerns over the global economic recovery during the third quarter.

A survey by Reuters showed that OPEC's oil output rose in July to the highest level since April 2020, following OPEC-Plus decision to ease output restrictions, and after Saudi Arabia gradually canceled its voluntary production cut.

Euro rose in European trade against dollar to near four-week highs as dollar purchases slow down, while concerns recede about divergent US-European policies. 

EUR/USD rose 0.15% to 1.1885, with an intraday low at 1.1867, after closing down stable yesterday not far from four-week highs at 1.1908.

The dollar index fell over 0.1% on Tuesday for the second session as the dollar continues to suffer against a basket of major rivals. 

An index tracking US industrial activities showed a slowdown in July, a sign the world's largest economy hasn't fully recovered yet from the coronavirus impact. 

The Federal Reserve asserted continued support for the economy until inflation and employment targets are achieved, pushing all speculation on early rate hikes away. 

As concerns about divergence US and European policies recede, euro continued to build up strength, with the European Central Bank also asserting continued support to the economy especially as Europe doesn't face same inflationary pressures as the US. 

The US dollar fell against most of its major peers Monday, but pared some of its losses as investors shifted focus to the latest updates regarding of the coronavirus pandemic.

The White House and a bipartisan group of senators are working on the new and huge infrastructure spending bill to support the US economic growth.

The US coronavirus infections daily average jumped to 72,000 cases during the past 7 days, the highest level since February.

Members of the US Federals Reserve warned of the impact of this change in events on the recovery of the economy, especially after the highly transmible delta variant emerged.

The Institute for Supply Management revealed that the US manufacturing PMI fell to 59.5 points in July from 60.6 points in June, missing market's forecasts of 60.8.

The dollar index fell against a basket of major currencies by 0.1% to 92.05 points as of 18:40 GMT, after hitting a high of 92.1 points and a low of 91.9 points.