Gold prices rose on Tuesday, extending rally for the fifth straight day, and hit a 2-week high, thanks to a retreat in the US Treasury bond yields and strong safe-haven demand.

Gold prices fell 0.4% to $1,771.81 an ounce, after opening at $1,778.56, and hit a high and the highest since August 6 at $1,782.64.

Gold prices rose 0.5% to the highest since August 6 at $1,795.54 an ounce, after opening at $1,787.40, and hit a high of $1,784.40.

Gold closed higher by 0.4% yesterday, on risk aversion and strong safe-haven demand.

The 10-year US Treasury bond yield fell nearly 4% today, sliding for the third straight day, and hit a 2-week low at 1.217%.

This comes amid growing doubts that the US Federal Reserve will start tightening monetary policy in the near term, will investors await the release of new data this week, which will help determine the future of monetary policy in the US, especially the Federal Reserve's meeting minutes on Wednesday.

Rising Covid-19 cases in Asia and most parts of the world, and the mounting geopolitical tensions after the Afghan government collapsed and the Taliban taking over Afghanistan, forced investors to avoid risky assets and to focus on safe havens.

Gold stocks at the SPDR ETF fell 1.16 metric tonnes yesterday, with the total at the lowest level since May 5 at 1,020.63 metric tonnes.

Oil prices fell on Tuesday, deepening losses for the fourth straight day, due to growing demand concerns in the world's second largest oil consumer, after oil refining levels declined during July.

US crude fell 1.1% to $66.64 a barrel, after opening at $67.39, and hit a day high at $67.64, and Brent crude fell 1.3% to $68.86, after opening at $69.74, and hit a day high at $69.74.

US crude lost 0.7%, and Brent crude fell 0.8% yesterday, in their third straight daily loss.

Data showed on Monday slowdowns in the Chinese factory production growth and retail sales during July, due to the new Covid-19 outbreak in addition to the floods that disrupted business activity.

Oil refining in China fell during July to the lowest level since May 2020, after independent refineries lowered production due to weak demand and withdrawal levels.

Reuters quoted informed sources that OPEC-Plus believe that the market does not need more oil than the planned output in the next few months, despite pressure from the US to increase supply and curb rising prices.

The administration of US President Joe Biden last week called on the OPEC Plus alliance on Wednesday to boost oil output to ward off rising gasoline prices to ensure the safety of the global economic recovery.

USD/JPY tilted higher in Asian trade away from August 4 lows following earlier data from Japan and ahead of US data and a speech by Fed Chair Jerome Powell later today. 

As of 07:02 GMT, USD/JPY rose 0.09% to 109.30, with an intraday high at 109.35. 

From Japan, the tertiary industrial index rose 2.3% in June, compared to a 2.9% drop in May, besting estimates of a 1.8% increase. 

US retail sales are expected down 0.2% in July, compared to a 0.6% increase in June, while core sales are expected up 0.2%. 

US industrial production is expected up 0.5% in July, while the capacity utilization rate is expected up to 75.7%, as wholesale inventories are estimated up 0.8%. 

US housing index is expected to settle at 80 for August, while Federal Reserve Chair Jerome Powell is due to speak at an online town hall event. 

Most of the major US stock indices rose on Monday, and pared their early losses, as Dow Jones and S&P 500 hit new records.

The average daily Covid-19 infection rate has increased in many countries around the world, led by the US, which is now hit by a new wave of infections.

The Senate last week passed the $1 trillion infrastructure spending bill as it was widely expected.

Chinese data showed today that industrial production rose by 6.4% in July, worse than forecasts of 7.9%, and retail sales rose 8.5%, also worse than forecasts of 10.9%, while the unemployment rate rose to 5.1% from 5%.

To the oil market, WTI crude September futures fell 1.7% or $1.15, and closed at $67.29 a barrel.

Brent October futures fell 1.5% or $1.08, and closed at $69.51 a barrel.

As for stocks, Dow Jones rose 0.3% or 110 points, and closed at 35,625, with a day high of 35,631, and a low of 35,231.

S&P 500 rose 0.2% or 11 points to 4,479, after hitting a high of 4,480, and a low of 4,437.

Nasdaq fell 0.2% or 29 points to 14,793, with a high of 14,794 and a low of 14,610.