Gold prices fell on Thursday, deepening losses for the third straight day, as the US dollar rose against its peers, but the precious metal is on track for the largest annual loss since 2015, due to a drop in safe haven demand.

Gold prices fell 0.5% to $1,796.16, after opening at $1,804.52, and hit a day high at $1,805.51.

Gold closed lower by 0.1% yesterday, the second straight daily loss, and trimmed its loss by 0.9% after the US dollar fell.

The dollar index rose 0.3% today, rebounding from the 1-month low of 95.76 points hit yesterday, which lowers demand for gold and dollar-denominated metal prices.

This US dollar is rebounding as odds receded for a full nationwide lockdown to limit the spread of the Omicron variant in the US, especially after several scientific studies showed lower health risks from the new variant compared to other variants such as Delta.

Gold prices fell 5.0% so far this year, to head for the first annual loss in 3 years, and the largest annual loss since 2015, due to a drop in safe haven demand.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at 975.66 metric tonnes.

Euro fell in European trade away from four-week highs against dollar on profit-taking, amid renewed concerns on US-European monetary divergence, and as Omicron variant concerns take a backseat.

 EUR/USD fell 0.4% to 1.1380, with an intraday high at 1.1360, after closing up 0.4% yesterday, marking four-week highs at 1.1369. 

Euro is also pressured by divergent European-US monetary policies as the Fed readies to hike rates in the first half of next week, while the ECB carries on its easing policies.

The dollar index rose 0.3% on Thursday away from month lows at 95.76 against a basket of major rivals.

The gains come as concerns over Omicron's impact on the economy fades, while investors focus once again on major economic and monetary themes.

Oil prices rose on Wednesday, as the US dollar fell against most currencies, and extended gains after the release of US inventories data.

The Energy Information Administration reported today that the US crude inventories fell 3.6 million barrels to 420 million barrels during the past week, while analysts forecast a drop by 2.7 million barrels.

While the American Petroleum Institute reported yesterday in preliminary data that the US crude inventories fell 3.1 million barrels during the same period.

The dollar index fell against a basket of major currencies by 0.3% to 95.9 points as of 20:07 GMT, after hitting a high of 96.4 points and a low of 95.7 points.

WTI January futures rose 0.8% or 85 cents, and closed at $76.56 a barrel.

Brent February futures rose 0.4% or 29 cents, and closed at $79.23 a barrel, after breaking the $80 mark earlier.

The US dollar fell against most currencies on Wednesday, amid concerns about the coronavirus pandemic.

The French government reported more than 208,000 cases in a single day, the highest daily rate of infections in Europe since the outbreak of the pandemic.

The French Minister of Health warned of a coronavirus tsunami in France, which reflects WHO Director Tedros Adhanom's statements  that Omicron, spreading at the same time as Delta, is leading to a tsunami of cases.

Concerns about the pandemic had recently subsided after a study showed that Omicron appears to result in mild symptoms compared to other Covid variants, such as Delta.

The dollar index fell against a basket of major currencies by 0.3% to 95.9 points as of 20:14 GMT, after hitting a high of 96.4 points and a low of 95.7 points.