Gold prices edges higher on Wednesday, to head for the first daily gain in 4 days, as the US dollar fell against a basket of currencies, but today's gain is being curbed by weak safe-haven demand.

Gold prices rose more than 0.15% to $1,791.44, after opening at $1,789.00, and hit a day high at $1,785.86.

Gold closed lower by 0.1% yesterday, the third straight daily loss due to profit taking from a 3-week high of $1,814.27 an ounce.

The dollar index fell 0.1% today, deepening losses for the third day in a row, which lifts demand for gold and dollar-denominated metal prices.

The greenback fell after an unexpected blow to President Joe Biden's spending plans, after moderate Democratic Senator Joe Manchin said he would not support the $1.75 trillion domestic investment bill.

"I cannot vote to continue with this piece of legislation," said Joe Manchin who is key to President Joe Biden's hopes of passing the bill.

 Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at 978.57 metric tonnes.

Sterling rose in European trade against dollar for second straight session as Omicron concerns fade, following recent decisions by the UK government by not imposing additional restrictions during Christmas and New Year holiday.

GBP/USD rose 0.4% to 1.3282, with an intraday low at 1.3240, after climbing 0.4% yesterday, the first profit in three days as the dollar declines against major rivals. 

Sterling rallied 0.4% yesterday, the first profit in three days as the dollar declines against major rivals.

After a prolonged UK government meeting, it ended up avoiding imposing further restrictions during Christmas. 

The decision calmed down concerns over continued shutdown and economic fallout from the virus.

Britain was the first major G7 economies to raise interest rates since the start of the pandemic, by15 basis points to 0.25 to control inflation. 

Oil prices rose on Wednesday, for the second day in a row, thanks to improved market sentiment, after the release of preliminary data on US crude inventories that showed a large drop, and ahead of the EIA's weekly report.

US crude rose 0.7% to $71.75 a barrel, after opening at $71.24, and hit a low at $70.98, and Brent crude rose 0.8% to $74.58 a barrel, after opening at $74.01, and hit a low at $73.71.

The US crude gained 3% yesterday, and Brent crude rose 2.7%, in the first daily gain in 3 days, and rebounded from a 3-week low thanks to improved market sentiment in the markets.

The market sentiment improved after Moderna's statements and the British Prime Minister Boris Johnson's decision.

The American biotech frim Moderna stated that a booster shot of its Covid-19 vaccine protect from Omicron infection.

The European Union gave the green light to Novavax for people aged 18 or over, making it the fifth vaccine available for use.

The British Prime Minister Boris Johnson decided not to impose stricter social distancing measures during the Christmas period, but refused to rule out new measures if needed.

The American Petroleum Institute reported in preliminary data that the US crude inventories fell 3.67 million barrels during the week ending December 17, while analysts forecast a drop by 2.6 million barrels.

The total US commercial inventories fell to 430 million barrels, which is the lowest level since the week ending October 8, in a positive sign of the US domestic demand.

The US Energy Information Administration's official report will be released later today, amid forecasts for inventories to drop by 2.4 million barrels.

Oil prices rose on Tuesday, ahead of the release of US inventories data, while the US dollar held against most currencies.

Several European countries, such as the UK, started to see record daily spike in Covid-19 infections due to the Omicron outbreak, which threatens another lockdown and closures.

The White House stated that US President Joe Biden does not plan to impose full lockdown restrictions due to the spread of the Omicron variant in several countries

As of 18:55 GMT, the dollar index held at 96.5 points, and hit a high of 96.6 points and a low of 96.3 points.

WTI January futures rose 4.1% to $71.4 a barrel as of 12:19 GMT.

Brent February futures rose 3.7% to $74.2 a barrel.