Gold prices fell on Thursday, deepening losses for the second straight day, and pulled back from a 2-month high on profit-taking, as the US dollar rebounded against a basket of major currencies.

Gold prices fell more than 0.5% to $1,908.80 an ounce, after opening at $1,919.32 and hitting a high of $1,927.69.

The yellow metal lost 1.6% yesterday, and posted the first loss in 6 days and the biggest loss since December 9, on profit-taking from a 2-month high of $1,959.29.

The US dollar index rose 0.4% against a basket of major currencies today, extending its recovery for the second straight day from its 34-month low of 89.20 points.

The US dollar's recovery is based on bargain hunting after it fell to its lowest levels in several years, which also weighs down on the prices of dollar-denominated metals and commodities, making them more expensive for other currencies holders.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at 1,186.78 MT.

Oil prices rose on Thursday, extending gains for the third straight day, and hit an 11-month high, after US oversupply concerns faded thanks to a drop in the US crude inventories.

US crude rose 1.5% to the highest since February 2020 at $51.26 a barrel, after opening at $50.49, and hit a low of $50.41, and Brent crude rose 1.4% to , the highest since February at $54.88 a barrel, after opening at $54.15, and hit a low of $54.15.

US crude gained 1.4% yesterday, and Brent crude futures rose 1.2%, after Saudi Arabia’s voluntary decision to cut production.

Saudi Energy Minister, Abdulaziz bin Salman said that his country would voluntarily cut its production by 1 million barrels per day in February and March to balance the market.

The meeting of OPEC-Plus Joint Ministerial Committee, which is held to review the global output cut agreement, concluded with an agreement to keep the current production levels unchanged until the end of March.

OPEC-Plus agreed on early December to increase output by 500,000 barrels per day starting from January 2021, and agreed to hold a monthly ministerial meeting to review the market situation and adjust production levels accordingly.

The US Energy Information Administration reported today that crude inventories fell 8 million barrels during the past week, while analysts forecast a drop by 2.8 million barrels.

The total commercial inventories fell to 485.3 million barrels, the lowest level since the week ending October 30, which is considered a positive sign of the US domestic demand.

While the US production remained unchanged last week, with a total of 11.0 million barrels per day.

Asian stock indices opened the fourth session of the week mixed but mostly higher in tandem with Wall Street, with Japan, China, Australia, New Zealand, and South Korea higher, while Hong Kong lost ground. 

The Democrats' Georgia Senate win and control of both houses of Congress bolstered risk appetite in the market, with President Elect Joe Biden intending a massive stimulus package to bolster the economy. 

The prospects overcame the recent storming of Capitol Hill by President Donald Trump supporters, which shocked the US with the lapse in security. 

From Japan, average income fell 2.2% in November, sharpening a 0.7% drop in October, while the Japanese government announced to plan to impose emergency state for the second time to control the Covid 19 pandemic. 

From Australia, the trade surplus fell to 5.02 billion Australian dollars from 6.58 billion in October, while building permits rose 2.6%, slowing down from 3.3% in October. 

Japan's TOPEX rose 2.08% to 1,833, while Nikkei climbed 1.84% to 27,553. 

China's CSI 300 rose 1.04% to 5,473, while Shanghai added 0.42% to 3,565. 

Hong Kong's Hang Seng fell 0.14% to 27,654, while South Korea's KOSPI rose 2.41% to 3,039. 

New Zealand's NZX 50 rose 1.69% to 13,559, while Australia's S&P/ASX 200 rose 1.75% to 6,723. 

USD/JPY tilted higher in Asian trade off March 10 lows following earlier data from Japan and ahead of US data later today in addition to Fed speeches. 

As of 07:04 GMT, USD/JPY rose 0.19% to 103.24, with an intraday high at 103.25. 

From Japan, average income fell 2.2% in November, sharpening a 0.7% drop in October, while the Japanese government announced to plan to impose emergency state for the second time to control the Covid 19 pandemic. 

The World Health Organization reported 85.09 million global Covid 19 cases so far, with the death toll standing at 1.861 million. 

From the US, unemployment claims for the week ending January 2 are expected up 11 thousand to 798 thousand, while continuing claims are expected down 19K to 5.2 million. 

US goods trade deficit is expected up to $66.7 billion from $63.1 billion, while services PMI is expected down to 54.5 from 55.9. 

Federal Reserve Bank of Chicago President Charles Evans is due to speak at a webinar hosted by the Wisconsin Bankers Association.

Otherwise, the Democrats' Georgia Senate win and control of both houses of Congress bolstered risk appetite in the market, with President Elect Joe Biden intending a massive stimulus package to bolster the economy. 

The prospects overcame the recent storming of Capitol Hill by President Donald Trump supporters, which shocked the US with the lapse in security.