Gold prices slipped on Wednesday, after posting yesterday the largest daily gain in two months, while the US Treasury bond yields rose today, ahead of the release of key inflation data in the US.

Gold prices fell 0.4% to $1,709.70 an ounce, after opening at $1,716.11, and hit a day high at $1,719.58.

The yellow metal closed higher by 2% yesterday, and posted its largest daily gain since early January, within recovery attempts from a 9-month low of $1,676.77.

Gold prices lost 1.9% during the past week, in the third straight weekly loss, due to high US T-bond yields.

The 10-year yields rose by 2% to resume gains after taking a pause yesterday, trading near the 13-months high of 1.622%. 

From the US data, investors await major inflation data for February among other important data this week, and in case of positive data the bond yields will extend gains, and weigh down on gold prices.

 Gold stocks at the SPDR ETF fell 1.46 metric tonnes yesterday, with the total at the lowest level since April 28, 2020 at 1,061.98 metric tonnes.

Oil prices continued to fall Wednesday, on profit-taking from several years highs, and after a surge in the US crude inventories according to the American Petroleum Institute's preliminary data, ahead of the EIA official weekly report.

US crude fell 1.1% to $63.16, after opening at $63.83, and hit a day high of $64.33, and Brent crude fell more than 0.9% to $66.53, after opening at $67.17, and hit a day high of $67.78.

US crude lost 1.3% yesterday, on profit-taking from its two-and-a-half-year high of $67.94, and Brent futures fell 1.2%, and pulled back from the highest since May 2019 of $71.36.

The American Petroleum Institute (API) revealed yesterday in preliminary data that the US crude inventories rose by about 12.8 million barrels during the week ending March 5, higher than forecasts of 2.7 million barrels.

The total commercial inventories rose to 495 million barrels, the highest level since the week ending January 1.

While the US Energy Information Administration's official data will be released later today, amid forecasts for inventories to fall by 2.1 million barrels.

Euro fell in European trade against dollar, inching near four-month lows as US treasury yields rebound before US inflation data. 

EUR/USD fell 0.3% to 1.1869, after closing up 0.5% yesterday, the first profit in five days away from four-month lows at 1.1835. 

The dollar index rose over 0.2% on Wednesday after a recent dip on profit-taking away from four-month highs at 92.50. 

Haven demand increases once again on the dollar as treasury yields  rally and investors shun risks. 

10-year treasury yields rose to 1.5%, inching near 13-month peak at 1.622. 

From the US data, investors await major inflation data for February among other important data this week. 

The Japanese yen rose against the US dollar on Tuesday, despite the release of disappointing economic data in Japan.

Japan's GDP growth rose 2.8% in the last fourth quarter, down from 5.3% in the third quarter. 

The Japanese household spending fell 6.1% in January, compared to a 0.6% dip in December, while average income fell 0.8%.

The US House of Representatives will vote tomorrow on the $1.9 trillion Covid-19 relief package after it was approved by the Senate.

As of 20:00 GMT, USD/JPY fell 0.4% to 108.4, after hitting a high of 109.2 and a low of 108.4.