Gold prices fell on Thursday, to head for the third loss in 4 days, due to a slowdown in safe haven demand amid hopes that the ongoing drop in oil prices would curb the rising global inflation rate.

Gold prices fell 0.45% to $1,858.74, from the opening level of trading today at $1,867.16, and recorded the highest level at $1,870.94.

Gold closed higher by 0.7% yesterday, after taking a pause on Tuesday due to profit-taking from a 5-month high of $1,877.12 an ounce.

This gain came after data showed that the UK's inflation rate hit the highest level since 2011.

This fueled concerns about global inflation and the ability of global central banks to deal with this risk, which increased demand for gold as a safe haven.

Oil prices fell on Thursday, and hit 6-week low due to news that the US intends to cooperate with China and Japan for a coordinated release of fuel reserves to reduce energy prices.

These developments raised hopes that the ongoing drop in oil prices would curb the rising global inflation rate, which weighs down on demand for gold as a shelter from inflation.

Gold stocks at the SPDR ETF rose 0.88 metric tonnes yesterday, with the total at 976.87 metric tonnes.

Oil prices fell on Thursday, deepening losses for the second straight day, and hit 6-week low due to growing oversupply fears amid news that the US intends to cooperate with China and Japan for a coordinated release of fuel reserves to reduce energy prices, in addition to the International Energy Agency's warnings of an upcoming increase in global supplies.

US crude fell 1.4% to the lowest level since October 7 at $77.10 a barrel, after opening at $78.20, and hit a high at $78.41, and Brent crude fell 1.1% to the lowest since October 7 at $79.30 a barrel, after opening at $80.18, and hit a low at $80.20.

The US crude fell 3% yesterday, its second straight daily loss and Brent crude fell 2.6%, in its first loss out of 3 days.

Reuters reported that the US has asked major oil consumers including China and Japan to consider releasing crude stockpiles in a coordinated effort to lower global energy prices.

The US administration's attempts come as inflationary pressures accelerate, driven by high energy prices, which hinder the continued global economic recovery from the damage caused by the worst health crisis in a century.

The International Energy Agency warned that more global supplies will be available in the coming months, which is expected to cause a global supply glut.

The US Energy Information Administration reported today that the US crude inventories fell 2.1 million barrels during the past week, while analysts forecast a rise by 1 million barrels.

While the US output fell 100K barrels last week, with the total at 11.4 million barrels per day.

The US dollar fell slightly against most currencies on Wednesday, amid anticipation of key jobs data on Thursday.

Data showed yesterday that the US retail sales and industrial production rose more than expected in October.

Federal Reserve members tried to ease the market fears about high inflation, and emphasized that this rise is transitory.

However, analysts warned of the rise in inflation, calling the Fed to take more measures to confront the rise in prices of goods and services.

Economist Mohamed El-Erian said that the US Federal Reserve is losing credibility in the markets and should take measures to face inflation, led by accelerating the pace of tapering in December.

The dollar index fell against a basket of major currencies by 0.1% to 95.7 points as of 21:07 GMT, after hitting a high of 96.2 points and a low of 95.7 points.

Gold prices rose on Wednesday, and hit a 5-month high, on the US dollar's drop against most currencies.

Federal Reserve members tried to ease the market fears about high inflation, and emphasized that this rise is transitory.

However, analysts warned of the rise in inflation, calling the Fed to take more measures to confront the rise in prices of goods and services.

Economist Mohamed El-Erian said that the US Federal Reserve is losing credibility in the markets and should take measures to face inflation, led by accelerating the pace of tapering in December.

The dollar index fell against a basket of major currencies by 0.1% to 95.7 points as of 21:10 GMT, after hitting a high of 96.2 points and a low of 95.7 points.

Gold spot prices rose 0.8% to the highest since June 17 at $1,869.2 an ounce as of 21:10 GMT.