Gold prices rose on Thursday, extending gains for the third straight day, breaking the $1,800 psychological barrier, and hit a 3-week high while on track for the biggest weekly gain in 5 weeks, thanks to strong safe-haven demand due to increasing warnings by global banks about the rising inflation levels.

Gold prices rose 0.6% to the highest since November 26 at $1,809.90 an ounce, after opening at $1,799.35, and hit a day high at $1,797.25.

Gold closed higher by 1.25% yesterday, the second straight daily gain, as the US dollar fell against a basket of major currencies.

Gold prices gained 1.5% so far this week, to head for the biggest weekly gain in 5 weeks, thanks to strong safe-haven demand.

The central banks of the US, the UK, Europe and Japan, raised inflation expectations for 2022 during their meetings this week, and most of them projected that the peak levels of price hikes have not been reached yet, setting the second quarter of 2022 to reach those levels.

The Federal Reserve said on Wednesday that it will move quickly in cutting its bond purchases by next March, and hinted three rate hikes by the end of 2022

Federal Reserve Chairman Jerome Powell expressed more flexibility to raise interest rates sooner, and said that the economy no longer needs increasing support, especially after prices and wages grew, and the rapid improvement in the labor market.

The Bank of England surprised the markets after it decided to raise interest rates by 15 basis points to 0.25%, in the first time since the beginning of the pandemic.

The European Central Bank said it would reduce bond purchases in the coming period, but ruled out raising European interest rates in the next year.

International Monetary Fund spokesman Gerry Rice said the Federal Reserve's decision to ramp up the tapering of bond purchases is a well-calibrated, proportionate response to rising wage and price pressures, but increases risks for emerging markets.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the lowest level since last November 17 of 977.70 metric tonnes.

The US dollar fell against most currencies on Thursday, after the release of weak economic data, as while investors parse monetary policy decisions by the US Federal Reserve and several global central banks.

The Fed kept the interest rate between zero and 0.25% unchanged, and to reduce asset purchases by $30 billion per month, starting in January, double of what was previously announced of $15 billion per month.

The European Central Bank reveled its plan to end the bond-purchasing program worth 1.85 trillion euros ($2.2 trillion) by the end of March, but decided to continue with the asset purchase program launched before the coronavirus pandemic.

The Bank of England surprised the markets after it decided to raise interest rates by 15 basis points to 0.25%, in the first time since the beginning of the pandemic.

The US initial unemployment claims reached 206K last week, missing forecasts of 195K.

The dollar index fell against a basket of major currencies by 0.5% to 95.9 points as of 20:45 GMT, after hitting a high of 96.4 points and a low of 95.8 points.

Gold prices rose on Thursday, as the US dollar held against most currencies, after the release of weak economic data.

The European Central Bank reveled its plan to end the bond-purchasing program worth 1.85 trillion euros ($2.2 trillion) by the end of March, but decided to continue with the asset purchase program launched before the coronavirus pandemic.

The Bank of England surprised the markets after it decided to raise interest rates by 15 basis points to 0.25%, in the first time since the beginning of the pandemic.

The US initial unemployment claims reached 206K last week, missing forecasts of 195K.

The dollar index fell against a basket of major currencies by 0.5% to 95.9 points as of 20:56 GMT, after hitting a high of 96.4 points and a low of 95.8 points.

Gold spot prices rose 1.9% to $1,798.8 an ounce as of 20:56 GMT.

Oil prices rose on Thursday,  as the US dollar held against most currencies, following monetary policy decisions by several global central banks.

The Fed kept the interest rate between zero and 0.25% unchanged, and to reduce asset purchases by $30 billion per month, starting in January, double of what was previously announced of $15 billion per month.

The European Central Bank reveled its plan to end the bond-purchasing program worth 1.85 trillion euros ($2.2 trillion) by the end of March, but decided to continue with the asset purchase program launched before the coronavirus pandemic.

The Bank of England surprised the markets after it decided to raise interest rates by 15 basis points to 0.25%, in the first time since the beginning of the pandemic.

The Energy Information Administration reported today that the US crude inventories fell 4.6 million barrels to 428.3 million barrels during the past week, while analysts forecast a drop by 1.7 million barrels.

The dollar index fell against a basket of major currencies by 0.5% to 96.06 points as of 18:06 GMT, after hitting a high of 96.4 points and a low of 95.8 points.

WTI January futures rose 2.1% to $72.3 a barrel, as of 18:00 GMT.

Brent February futures rose 1.6% to $75.06 a barrel.