Gold prices rose on Thursday, extending gains for the fourth straight day, and jumped to a 2-week high thanks to the US dollar's drop against its peers, but today's gains remain limited due to weak safe-haven demand.

Gold prices rose 0.1% to the highest since January 8 at $1,875.11 an ounce, after opening at $1,871.09 and hitting a low of $1,866.17.

The yellow metal gained 1.75% yesterday, its third straight daily gain and the largest since January 4, as most dollar-denominated metal prices rose.

The dollar index fell against a basket of major currencies by 0.3% today, on track for the third straight daily loss.

The US dollar's drop comes due to slowing demand amid high market sentiment and improved appetite in high risk currencies .

The market sentiment is high thanks to hopes about a huge US stimulus package by the new US President Joe Biden, which is aimed at helping in the US economy recovery.

Joe Biden's inauguration ceremony took place on Wednesday at the Capitol building in Washington, and he was sworn in as the 46th US president.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at 1,174.13 MT.

Oil prices fell on Thursday, deepening losses for the second straight day, weighed down by a build in the US crude inventories, according to the American Petroleum Institute's preliminary data, but today's losses are still limited thanks to hopes about US President Joe Biden's measure to add extra stimulus to support the US economy. 

US crude fell more than 0.2% to $52.78 a barrel, after opening at $52.90, and hit a high of $53.22, and Brent crude fell 0.25% to $55.54 a barrel, after opening at $55.67, and hit a high of $56.02.

US crude yesterday lost 0.1%, and Brent crude futures fell 0.25% in their third daily loss in 4 days, due to doubts about the global demand recovery.

The American Petroleum Institute reported Wednesday that crude inventories rose 2.6 million barrels during the week ending January 15, missing forecasts of a drop by 1.2 million barrels.

While the US Energy Information Administration's official data will be released on Friday, amid forecasts for inventories to fall by 1.2 million barrels.

The market sentiment is high thanks to hopes about a huge US stimulus package by the new US President Joe Biden, which is aimed at helping in the US economy recovery.

Joe Biden's inauguration ceremony took place on Wednesday at the Capitol building in Washington, and he was sworn in as the 46th US president.

USD/JPY tilted lower in Asian trade away from December 10 highs for the fifth session out of nine, following earlier data and policy decisions from Japan.

As of 06:53 GMT, USD/JPY fell 0.15% to 103.38, with the lowest since January 7 at 103.33. 

From Japan, the trade surplus rose to 751 billion yen from 367 billion in November, missing estimates of 943 billion.

Japan's exports rose 2% in December, while imports tumbled 11.6% last month, as analysts expected a 14% drop. 

Bank of Japan's policymakers voted to maintain rates at negative 0.10% as expected while pledging to keep 10-year government yields at zero.

From the US, unemployment claims for the week ending January 14 are expected down 35K to 930K, while continuing claims for the previous week are estimated up 129K to 5.4 million.

US building permits are expected down to 1.6 million units in December, while housing starts are expected up to 1.56 million.

US Philly manufacturing index is expected up to 11.2 from 11.1 in December.

Euro rose in European trade against dollar on improved risk appetite in the markets after President Joe Biden promised more stimulus to support the US economy.

EUR/USD rose 0.3% to 1.2138, after closing down 0.2% yesterday, the first loss in three days after weak inflation data for Europe. 

The dollar index fell 0.25% on Thursday against a basket of major rivals as haven demand declines on the greenback. 

US stimulus prospects are bolstering global sentiment as the world recovers from the coronavirus pandemic.

The European Central Bank is meeting today to discuss policies and decide on interest rates.

ECB President Christine Lagarde will speak later on 13:30 GMT, and we note the ECB decided at the last meeting to increase its bonds purchases program by 500 billion euros to a total of 1.85 trillion a month, 

Lagarde said back then she expects the European GDP to shrink in the last quarter of 2020, with risks still posing for regional performance.