Gold prices rose on Tuesday, extending gains for the second straight day, near a 3-week high as the US 10-year Treasury bond yields fell, ahead of the Federal Reserve Chairman's semi-annual testimony before the US Congress.

Gold prices rose more than 0.5% to $1,817.60 an ounce, after opening at $1,807.74, and a high at $1,804.56.

Gold closed higher by 0.1% yesterday, above the $1.800 barrier, despite the US dollar's strong rise.

The 10-year US Treasury bond yield fell 2.1% today, the first loss in 4 days.

This comes ahead of Federal Reserve Chairman Jerome Powell's semi-annual testimony, which is expected to deliver cues on the future of the US monetary policy.

At 16:00 GMT, Jerome Powell will deliver his testimony before the US House of Representatives Financial Services Committee in Washington, D.C.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the lowest level since last May 20 of 1,037.28 metric tonnes.

Sterling rose in European trade against dollar on track for first profit in three days following strong UK inflation data, which bolstered the case for UK policy tightening sooner than expected. 

GBP/USD rose 0.4% to 1.3862, after closing down 0.5% yesterday, the second loss in a row, while strong UK inflation data paved the way for possible policy tightening in the UK soon. 

UK consumer prices rose 2.5% in June, the highest rate since August 2018, passing estimates of 2.2%. 

The data raised pressures on Bank of England policymakers to tighten the policy and raise interest rates sooner than initially planned. 

Sterling was the strongest performer against dollar among major currencies during May, marking a 2.9% profit, the largest monthly profit since July 2020.

The gains follow a campaign of rapid vaccination against Covid 19 in the UK, while the government officially relaxed economic restrictions to return life to usual pace. 

Silver prices rose on Tuesday, as the US dollar rose against most of its major rivals, and after the release of upbeat economic data.

Data showed that the US consumer price index rose by 0.9% in June, the largest monthly rise since 2008, higher than forecasts of 0.5%, and the y/y reading showed a rise by 5.4%. 

The core reading (excluding food and fuel prices) rose by 0.9%, higher than forecasts of 0.4%.

The dollar index rose against a basket of major currencies by 0.5% to 92.7 points as of 21:16 GMT, after hitting a high of 92.7 points and a low of 92.1 points.

Silver spot prices fell 0.7% to $26.06 an ounce as of 21:16 GMT, after hitting a day high of $26.44 and a low of $26.0.

The major US stock fell on Tuesday, after the release of the US inflation data sparked concerns in the market.

The US Q2 cooperate earnings season launched in Wall Street, with major US banks like JP Morgan Chase and Morgan Stanley reporting their results today.

Data showed that the US consumer price index rose by 0.9% in June, the largest monthly rise since 2008, higher than forecasts of 0.5%, and the y/y reading showed a rise by 5.4%. 

The core reading (excluding food and fuel prices) rose by 0.9%, higher than forecasts of 0.4%.

To the oil market, WTI crude August futures rose 1.6% or $1.15, and closed at $75.25 a barrel, after hitting a high of $75.5 and a low of $73.6.

Brent August futures rose 1.7% or $1.33, and closed at $76.49 a barrel, after hitting a high of $76.6 and a low of $74.9.

As for stocks, Dow Jones fell 0.3% or 107 points, and closed at 34,888, with a day high of 35,018, and a low of 34,876.

S&P 500 fell 0.3% or 15 points to 4,369, after hitting a high of 4,392 and a low of 4,366.

Nasdaq fell 0.3% or 55 points to 14,677, with a high of 14,803 and a low of 14,660.