Gold prices fell on Thursday, to deepen losses for the third day, as the US dollar rallied against its rivals following the Federal Reserve's rate decision.

Gold prices fell more than 0.5% to $1,834.05 an ounce, after opening at $1,844.12 and hitting a low of $1,844.99.

The yellow metal gained 0.5% yesterday, and posted its second consecutive daily loss as the prices of dollar-denominated metals fell, in addition to weak safe-haven demand despite a sell-off move in global stock markets.

The US dollar index rose over 0.2% against a basket of major currencies today, which weighs down on gold prices.

The US dollar is shining as the best alternative investment, due to investors' risk aversion, concerns about Q4 corporate earnings reports, and the delay of Covid-19 vaccination in most parts of the world.

The US Federal Reserve decided on Wednesday to hold the interest rate unchanged between zero and 0.25%, and also kept the size of its monthly bond purchases program at $120 billion.

The Fed stated that the pace of recovery in economic activity and job creation has moderated in recent months due to the rising Covid-19 infections in the country.

Fed Chairman Jerome Powell projected that economic activity will improve later this year as vaccinations continue.

Gold stocks at the SPDR ETF fell 3.21 metric tonnes yesterday, with the total at the lowest level since January 14 at 1,169.17 MT.

Oil prices continued to rise as the US market opened on Thursday, as the oversupply concerns faded after a drop in the US crude inventories and oil production, but today's gains are being curbed by concerns over the Chinese demand after the government tightened the lockdown restrictions.

US crude rose 1.1% to $53.19 a barrel, after opening at $52.62, and hit a low of $52.25, and Brent crude rose 1.3% to $56.26 a barrel, after opening at $55.56, and hit a low of $55.34.

US crude yesterday lost 0.25% yesterday, and Brent crude futures fell 0.8%, as the prices of most dollar-denominated commodities dropped.

The US Energy Information Administration reported yesterday that crude inventories fell 9.9 million barrels during the week ending January 22, beating forecasts of a rise by 1.6 million barrels.

The total commercial inventories fell to 476.7 million barrels, the lowest level since the week ending March 27, 2020, in a positive sign of the US domestic demand.

The US production fell last week by 100,000 barrels per day, in the first weekly drop since the week ending December 11, with the total at 10.9 million barrels per day.

The Chinese authorities tightened the lockdown measure due to continued rise in Covid-19 cases, and imposed new restrictions to reduce the number of flights during the Lunar New Year holiday.

The United Kingdom also imposed restrictions on travel, and now citizens coming back from high-risk coronavirus countries are required to quarantine for 10 days, and banned all travel for unnecessary reasons.

European stocks fell on Thursday, deepening losses for the second straight day and hit a 4-week low (the lowest level in 2021), on investors' risk aversion following a massive sell-off in Wall Street.

The Stoxx Europe 600 index fell 0.9% as of 10:45 GMT, and hit the lowest since December 31 at 399.24 points, after it closed lower by 1.1% yesterday.

The energy sector saw the largest losses in Europe today, with a drop of more than 3%, after oil prices fell in global markets. 

S&P 500 futures fell 0.8%, after the index closed lower by 1% yesterday at Wall Street, in its second straight daily loss, due to a massive sell-off move after the Federal Reserve meeting.

The US Federal Reserve stated yesterday that the pace of the economic recovery in the country has moderated, due to spike in Covid-19 cases and pledged to continue the current monetary policy until clear signs of economic recovery appear.

Back to Europe, the Euro Stoxx 50 index fell 0.9%, France's CAC 40 fell 0.8%, the UK's FTSE 100 fell 1.3%, and Germany's DAX dropped 1.5%.

Oil prices rose on Thursday, after a drop in the US crude inventories and oil production, but today's gains are being curbed by concerns over the Chinese demand after the government tightened the lockdown restrictions.

US crude rose 0.3% to $52.78 a barrel, after opening at $52.62, and hit a low of $52.25, and Brent crude rose 0.5% to $55.84 a barrel, after opening at $55.56, and hit a low of $55.34.

US crude yesterday lost 0.25% yesterday, and Brent crude futures fell 0.8%, as the prices of most dollar-denominated commodities dropped.

The US Energy Information Administration reported yesterday that crude inventories fell 9.9 million barrels during the week ending January 22, beating forecasts of a rise by 1.6 million barrels.

The total commercial inventories fell to 476.7 million barrels, the lowest level since the week ending March 27, 2020, in a positive sign of the US domestic demand.

The US production fell last week by 100,000 barrels per day, in the first weekly drop since the week ending December 11, with the total at 10.9 million barrels per day.

The Chinese authorities tightened the lockdown measure due to continued rise in Covid-19 cases, and imposed new restrictions to reduce the number of flights during the Lunar New Year holiday.

The United Kingdom also imposed restrictions on travel, and now citizens coming back from high-risk coronavirus countries are required to quarantine for 10 days, and banned all travel for unnecessary reasons.