Gold prices rose in European trade for another session, almost hitting four-week highs as the dollar loses ground against major rivals. 

Haven demand is climbing on the precious metal as well amid concerns about global recession and US-China relations. 

Prices Today

Gold prices rose 1.1% to $1,783 an ounce, after rising 0.2% yesterday, edging near four-week highs at $1,788.

The Dollar

The dollar index fell 0.2% today, resuming the decline to near four-week lows against major rivals, ahead of major US labor data today.

The data will offer strong clues on the US economy's health during the third quarter and will provide clues on the Fed's next move.

Estimates

Analysts expect gold prices to keep gaining ground amid ongoing short-term risks, even as US treasury yields rebound. 

The SPDR

Gold holdings at the SPDR Gold Trust fell 2.9 tones yesterday to a total of 1,000 tones, the lowest since January 20.

Bank of England revealed that all 9 members voted unanimously in favor of increasing interest rates by 50 basis points to 1.75%, the sixth such increase in a row, matching estimates.

Bank of England voted today to increase interest rates by 50 basis points to 1.75%, the sixth such increase in a row, matching estimates, and after hiking rates by 25 basis points in the previous meeting.

Oil futures tilted higher as US crude rebounded from February 25, while Brent climbed off July 14 lows as the dollar index backed off September 2002 highs.

The changes come ahead of major US data later today and following the crucial OPEC+ meeting, which ended up raising September production goals by 100 thousand bpd.

As of 05:36 GMT, US crude futures due in August rose 0.11% to $91.05 a barrel, while Brent September futures rose 0.08% to $97.09 a barrel, as the dollar index slipped 0.12% to 106.35. 

From the US, unemployment claims for the week ending July 2 are expected down a thousand to 230 thousand, while continuing claims for the week ending June 25 are expected down a thousand as well to 1.327 million.

US goods trade deficit is expected down to $85 billion from $87.1 billion.

Taiwan officials met US House of Representatives President Nancy Pelosi and asserted their commitment to democratic values and economic links.

Beijing condemned the visit and vowed for military action and manoeuvres around Taiwan, while also conducting traditional rocket launch experiments.

US President Joe Biden said that latest US quarterly recession isn't surprising as the Fed is trying to control inflation, however he asserted his government was on the right path.

The US administration's new inflation reducing low will impose a 15% tax on international companies, however no taxes will be raised on those earning $400 thousand and lower.

The Federal Reserve decided to hike rates last week by 75 basis points to 2.5%, the highest since December 2018 as expected.

Official US data showed crude inventories rose 4.5 million barrels to 426.6 million barrels last week, while analysts expected a drawdown of 1.4 million barrels.

Gasoline stocks rose 0.2 million barrels to 225.3 million barrels, while distillate stocks fell 2.4 million barrels to 109.3 million barrels.

Currently, two-year US treasury yields stand at 3.203%, while 10-year yields hit 2.954%, such divergence is usually indicative of upcoming recession.

It was confirmed last week that US President Joe Biden got a positive Covid 19 diagnosis, with light symptoms.

Medical officials in the US warned from a new Covid 19 wave in the US and worldwide, one that's particularly virulent, and asserting the pandemic isn't over yet.

Europe recently allowed several state-owned Russian oil companies to sell their products to several members of EU countries, however the US is seeking to put a limit on prices of Russian oil.

Baker Hughes data last week showed US oil rigs steadied at 605 rigs, the highest since March 2020, while rising in June for the 23rd month in a row.

US oil output on the other hand rose 200 thousand bpd last week to 12.1 million bpd, off April 2020 highs.