Gold prices fell on Tuesday, to head for the first daily loss in 4 days, as the US dollar rose against its rivals, ahead of the Federal Reserve's first monetary policy meeting in 2021.

Gold prices fell 0.4% to $1,848.44 an ounce, after opening at $1,856.06 and hitting a low of $1,861.76.

The yellow metal gained 0.1% yesterday, and posted its first daily gain in 3 days on safe-haven demand.

The US dollar index rose over 0.25% against a basket of major currencies today, which weighs down on the prices of gold and other dollar-denominated metals.

The US dollar is shining as the best alternative investment, due to renewed concerns about the global economy and rising coronavirus infections in most parts of the world, in addition to doubts about the US stimulus package, despite the Democratic Party's control over the Congress in both the House of Representatives and the Senate.

The Federal Reserve will start its meeting later today, to discuss the latest developments of the US economy, and its decisions will be unveiled on Wednesday, amid broad expectation to keep the interest rates unchanged at 0.25%.

The first Fed meeting in 2021 is expected to provide key insight on the future of the US monetary policy, with President Biden's new approach in mind.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the lowest level since January 14 at 1,173.25 metric tonnes.

European stocks opened higher on Tuesday, and rebounded from the 3-week low that was hit yesterday, on track for the first gain in 3 days, on improved risk appetite thanks to positive news about the Covid-19 vaccines, and hopes about resolving the political tensions in Italy.

The Stoxx Europe 600 index rose 1.2% as of 11:45 GMT, after it closed lower by 0.8% yesterday and hit a 3-week low of 403.90 points.

The banking sector saw the largest gains in Europe today, rising more than 1.5%, thanks to a better-than-expected Q4 earnings result by UBS Bank.

Moderna announced its Covid-19 vaccine is effective against the two highly transmissible new strains found in the UK and South Africa.

The European Union is also pushing for AstraZeneca and University of Oxford to increase the number of vaccines allocated to Europe.

The Italian political crisis is almost resolved, as Prime Minister Giuseppe Conte is expected to resign today after a full cabinet meeting.

S&P 500 futures rose 0.3%, after the index closed higher by 0.4% yesterday at Wall Street, in the first daily gain out of three.

Back to Europe, the Euro Stoxx 50 index rose 1.5%, France's CAC 40 rose 1.4%, the UK's FTSE 100 added 0.9%, and Germany DAX index rose 1.95%.

Oil prices continued to rise as the US market opened on Tuesday, to extend gains for the second straight day thanks to hopes over Asia's demand, especially after India's oil imports rose in December to the highest level in more than 2 years, which offset the impact of doubts about the US stimulus package, and ahead preliminary data on the US crude inventories by the American Petroleum Institute.

US crude rose 0.6% to $53.22 a barrel, after opening at $52.91, and hit a low of $52.32, and Brent crude rose 0.5% to $56.32 a barrel, after opening at $55.96, and hit a low of $55.42.

US crude yesterday rose 1.5% yesterday, and Brent crude futures rose 1.6%, thanks to prospects that the Saudi output cut will balance the market.

India's oil imports rose in December to a 2-year high thanks to improved economic activity in the country after easing the Covid-19 lockdown.

Asia is the largest fuel-consumer in the world, as most of the major Asian countries depend on oil imports due to their weak production levels.

Officials from the US President Joe Biden's administration are trying to convince Republican lawmakers to approve more economic stimulus, which raises doubts about the impact of a "too big" spending package.

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

The US dollar turned lower on Tuesday after rising earlier, to head for the first daily loss in 3 days, ahead of the Federal Reserve's first monetary policy meeting in 2021.

The dollar index fell 0.1% to 90.30 points, after opening at 90.39 and hit a high of 90.61.

The greenback gained 0.2% yesterday, in the second straight daily gain due to rising demand and investors' risk aversion.

The Federal Reserve will start its meeting later today, to discuss the latest developments of the US economy, and its decisions will be unveiled on Wednesday, amid broad expectation to keep the interest rates unchanged at 0.25%.

The first Fed meeting in 2021 is expected to provide key insight on the future of the US monetary policy, with President Biden's new approach in mind.

At 15:00 GMT, the CB consumer confidence index reading will be released, which is expected up to 88.9 points in January from 88.6 in December.