Gold prices rose on Tuesday, and hit a 5-month high, resuming gains after taking a pause yesterday, amid expectations to continue rising towards the $1,900 psychological barrier, as Investors are focused on buying the metal as a safe haven amid expectations of a new rise in global inflation to new record levels.

 Gold prices rose 0.65% to the highest since June 14 at $1,874.90 an ounce, after opening at $1,862.72, and hit a high of $1,861.94.

Gold closed lower by less than 0.1% yesterday, in the first loss in 8 days.

Gold prices gained 2.5% last week, the largest weekly gain since May, thanks to strong safe-haven demand due to inflation concerns, after the US inflation rate saw a historic jump.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at 975.41 metric tonnes.

Euro rose in European trade away from 16-month lows against dollar, while still exposed for more losses as bets on European rate hikes fade following bearish remarks by European Central Bank President Christine Lagarde. 

EUR/USD rose 0.2% to 1.1385, with an intraday low at 1.1359, after closing down 0.7% yesterday, the fourth loss in a row, marking 16-month lows at 1.1356.

Dollar has also strengthened considerably against major rivals on haven demand, driving the euro down in particular after the bearish remarks by Lagarde.

Lagarde's remarks all but ruled out European rate hikes any time in 2022, with markets now pushing their bets towards 2023.

Lagarde said ahead of the European Parliament that any steps to tighten policy now will hurt more than benefit the economy.

Lagarde also doesn't expect requirements for raising rates to be met by 2022, and expects inflation to return to normal by the second half of next year.

Most of the main US stock indices held on Monday, after rising earlier in the session, as investors parse Federal Reserve members' remarks.

Several Fed members tried to ease the markets' fears of rising inflation in the US.

US Fed Chief Jerome Powell stressed that the rise in inflation is transitory and due to imbalance between supply and demand.

Data showed that the US inflation rate rose by 6.2% y/y in October, which is the highest level since 1990, due to rising energy and food prices amid strong demand and supply chains disruptions.

To the oil market, WTI December futures rose 0.1% or 9 cents, and closed at $80.88 a barrel.

Brent January futures fell 0.2% or 12 cents, and closed at $82.05 a barrel.

As for stocks, Dow Jones fell less than 0.1% or 13 points, and closed at 36,087, with a day high of 36,236, and a low of 36,031.

S&P 500 held at 4,683, after hitting a high of 4,697 and a low of 4,672 points.

Nasdaq fell less than 0.1% or 7 points to 15,854, with a high of 15,918 and a low of 15,778.

Oil prices fell on Monday, but trimmed losses despite the US dollar's rise against most of its peers.

An online summit between US President Joe Biden and his Chinese counterpart Xi Jinping will be held later today to discuss many common issues between the worlds two largest economic powers.

Chief economist Mohamed El-Erian in an interview with CNBC today dismissed suggestions that they oil prices could top $100 despite the unexpected recent rise.

Bank of America had stated in recent forecasts that the price of Brent will rise to $100 per barrel due to winter energy demand.

The dollar index rose against a basket of major currencies by 0.3% to 95.3 points as of 19:25 GMT, after hitting a high of 95.4 points and a low of 94.9 points.

As of 19:52 GMT, WTI December futures fell less than 0.1% to $80.7 a barrel.

Brent January futures fell 0.1% to $82.07 a barrel.