Gold prices rose on Tuesday, to rebound from a 7-week low for the second straight day, consolidating above the $1,800 barrier thanks to the US dollar's drop against its peers ahead of the US Treasury Secretary nominee Janet Yellen's testimony before the US Congress.

Gold prices rose 0.4% to $1,845.57 an ounce, after opening at $1,837.87 and hitting a low of $1,836.05.

The yellow metal gained 0.55% yesterday, within recovery attempts from a 7-week low of $1,803.32.

The dollar index fell 0.4% today, and pulled back from its 4-week high of 90.95 points, on track for the first daily loss in 3 days.

The US dollar's drop comes ahead of Janet Yellen's testimony before the US Congress, as she is currently nominated for the position of the Treasury Secretary after she was the head of the Federal Reserve.

The Wall Street Journal reported that Yellen will confirm a more traditional commitment to market-set currency rates during her testimony today in the US Senate.

The former head of the Federal Reserve's approach is the opposite of the outgoing President Donald Trump's stance, as he often criticized the dollar's strength.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the highest level since January 11 at 1,177.63 MT.

Oil prices rose on Tuesday, to rebound for the first day in 3 days, as the US dollar fell against its peers, but today's gains remain curbed by renewed concerns about the global demand due to the rising Covid-19 infections in China and Europe.

US crude rose nearly 1.0% to $52.63 a barrel, after opening at $52.13, and hit a low of $52.13, and Brent crude rose 1.3% to $55.42 a barrel, after opening at $54.72, and hit a low of $54.72.

US crude lost around 0.1% yesterday, its second straight daily loss and hit a 1-week low at $51.78, and Brent crude futures fell 0.2% and hit a 2-week low of $54.52.

The dollar index fell 0.4% today, and pulled back from its 4-week high of 90.95 points, which lifts the prices of dollar-denominated metals and commodities.

The US dollar's drop comes ahead of Janet Yellen's testimony before the US Congress, as she is currently nominated for the position of the Treasury Secretary after she was the head of the Federal Reserve.

The Chinese authorities re-imposed a full lockdown on Hubei, which hosts more than 28 million people, after Covid-19 cases in the province rose to the highest level in 10 months.

Most European countries are now under the strictest lockdown since the first coronavirus wave, especially after the UK identified the new Covid-19 strain.

RBC Capital Markets Bank said that oil market euphoria is unequivocally strong, but indicators from Asia are mixed, as China, the global engine of oil demand growth, is wrestling with fresh COVID outbreaks.

Asian stock indices opened mixed but mostly higher, with Japan, Australia, Hong Kong, and South Korea higher, while China and New Zealand lost ground, following earlier New Zealand data while markets price in the efficacy of Covid vaccines.  

From New Zealand, the business confidence index fell to 6 from 40.

The World Health Organization warned of a catastrophic moral failure due to unfair distribution for the coronavirus vaccine. 

US while former Fed Chair and Treasury secretary candidate Janet Yellen will testify ahead of the Financial Committee in the Senate, expected to urge the government for acting strongly with the launch of the new stimulus plans to boost the economy. 

Yellen is expected to say the US doesn't aim to weaken the dollar for competitive reasons in response to accusations from China and other powers. 

Japan's TOPEX rose 0.54%, while Nikkei 225 rose 1.21% to 28,584. 

China's CSI 300 shed 0.30%, while Shanghai declined 0.11% to 3,592. 

Hong Kong's Hang Seng rose 2.19% to 29,494, while South Korea's KOSPI rose 2.24% to 3,081. 

New Zealand's NZX 50 fell 0.17% to 12,817, while Australia's S&P/ASX 200 rose 1.16% to 6,740. 

USD/JPY tilted higher in Asian trade on Tuesday amid a lack of data from Japan and the US while former Fed Chair and Treasury secretary candidate Janet Yellen prepares for her Senate testimony. 

As of 07:09 GMT, USD/JPY rose 0.30% to 104.00, with a session-high at 104.08.

Janet Yellen will testify ahead of the Financial Committee in the Senate, expected to urge the government for acting strongly with the launch of the new stimulus plans to boost the economy. 

Yellen is expected to say the US doesn't aim to weaken the dollar for competitive reasons in response to accusations from China and other powers.