Gold prices fell on Wednesday, extending losses for the second straight day, to pullback from a 2-week high on profit-taking and weak safe-haven demand, as most global stocks rallied today.

Gold fell 0.8% to $1,713.02 an ounce, after it lost 0.75% yesterday, posting its first loss in 5 days, on profit-taking a 2-week high of $1,745.09.

Most global stock markets continued to rally, as investors sentiment improved thanks to the continued major economies reopening measures and relaxing the coronavirus-lockdown, and hopes for a quick global economic recovery from the coronavirus impact, in addition to  strong Chinese services data. 

Data showed that the Chinese services sector grew 55 points in May, beating forecasts of 47.4 points, and higher than 44.4 points in April.

According to the data, the Chinese service sector returned to a growth path in May, after 3 months of stagnation due to the coronavirus lockdown, which raised hopes about the recovery of the world's second largest economy.

The market sentiment also drew support from the continued efforts made by global central banks to expand unprecedented financial and monetary stimulus programs to ease the coronavirus pandemic economic impact.

Gold stocks at the SPDR ETF rose 0.88 metric tonnes yesterday, with the total at the highest level since May 2013 at 1,129.28 metric tonnes.

The US dollar fell on Tuesday, hitting a 3-month low, and deepening its losses for the seventh straight day, as demand slowed and risk appetite improved, in addition to fears over the protests and riot in the US, which comes ahead of key data releases that provide insight on the performance of the US economy after easing the coronavirus lockdown.

The dollar index fell 0.3% to the lowest since March 12 at 97.29 points, after opening at 97.57, and hit an intraday high of 97.63.

The greenback lost 0.15% yesterday, its sixth daily loss, as demand slowed due to the escalation of protests and riot in the US.

Most global stock markets continued to rally, as investors sentiment improved thanks to the continued major economies reopening measures and relaxing the coronavirus-lockdown, and hopes for a quick global economic recovery from the coronavirus impact, in addition to  strong Chinese services data. 

US President Donald Trump has threatened to deploy the military to stop the riots and protests across the US, which have broke out to denounce racism and police brutality, and the Pentagon confirmed the deploying about 1,600 soldiers in the Washington after several nights of riots.

Large-scale protests and riots across the US escalated after the killing of the American citizen, George Floyd, who died in the Minneapolis police custody, after a white cop put him on the ground under his knee for about 9 minutes.

Should the protests and riot continue for a longer time, it's expected to weigh down further on the battered US economy that already suffers from the coronavirus impact.

Investors are anticipating key economic data releases today on the US  private sector jobs and the services sector, which will deliver insight on the performance of the US economy after easing the coronavirus lockdown.

At 12:15 GMT, the US economy will release its reading for the ADP Non-Farm employment change, with forecasts of losing 9 million in May vs. 20.236 jobs lost in April. 

At 14:00 GMT, the ISM services PMI is expected to rise to 44.2 points in May vs. 41.8 points in April.

European stocks rose on Wednesday, to extend gains for the third straight day to a 3-month high, on strong investors sentiment following strong Chinese services data, and growing bets for the ECB to add extra monetary stimulus. 

The Stoxx Europe 600 index rose 1.3% as of 10:55 GMT, to the highest level since March 6 at 364.54 points, after it closed higher by 1.6% yesterday, as stocks linked to the economic cycle rallied.

The pan European index opened higher today, to extend its gains third straight day, and hit a 3-high high, with most European markets and sectors seeing green today.

The insurance sector topped the list of profitable sectors in Europe, with an increase of about 4%, thanks to the rise of the French insurance company AXA 5% after the disclosure of a plan to cut dividends by half due to the Corona virus crisis.

The insurance sector saw the largest gains in Europe today, rising more than 4%, as the French insurance company AXA shares rose 5% after the disclosure of a plan to cut dividends by half due to the coronavirus impact. 

Data showed that the Chinese service sector returned to a growth path in May, after 3 months of stagnation due to the coronavirus lockdown, which raised hopes about the recovery of the world's second largest economy.

The European Central Bank (ECB) will hold its monetary policy meeting on Thursday to discuss the latest developments in the euro zone economy, amid strong odds for the bank to expand the current  500 billion euros stimulus program for another month.

S&P 500 futures rose 0.5%, and hit a 3-month high, after the index closed higher by 0.8% yesterday at Wall Street, posting its third straight daily gain.

Back to Europe, the Euro Stoxx 50 index added 2.1%, France's CAC 40 jumped 1.9%, Germany's DAX added 2.3%, and the UK's FTSE 100 rose 1.2%.  

Euro rose in European trade on Wednesday to three-month highs against the dollar on track for seven days of consecutive gains, as risk appetite improved following upbeat Chinese services data. 

EUR/USD rose 0.5% to 1.1227, the highest since March 16, after closing up 0.3% yesterday, the sixth profit in a row, marking the longest streak of gains since March. 

The dollar index fell 0.3% on Wednesday, plumbing three-month lows at 97.29.

Haven demand plummeted on the dollar as risk appetite improved globally, while US protests dampened demand as well. 

Earlier Chinese data showed the services PMI at 55 in May, blowing past estimates of 47.4. 

In Europe, the European Central Bank is expected to expand the bonds purchases program from 750 billion euros to 1.250 trillion euros a month to support the economy.