Gold prices rose on Tuesday, resuming gains after a 2-day losing streak due to profit-taking from a 3-week high, while the US dollar fell against a basket of currencies.

Gold prices rose more than 0.4% to $1,798.27, after opening at $1,790.56, and hit a day high at $1,788.84.

Gold closed lower by 0.4% yesterday, the second straight daily loss due to profit taking from a 3-week high of $1,814.27 an ounce.

The dollar index fell 0.2% today, deepening losses for the second day in a row, which lifts demand for gold and dollar-denominated metal prices.

The greenback fell after an unexpected blow to President Joe Biden's spending plans, after moderate Democratic Senator Joe Manchin said he would not support the $1.75 trillion domestic investment bill.

"I cannot vote to continue with this piece of legislation," said Joe Manchin who is key to President Joe Biden's hopes of passing the bill.

Concerns are still lingering in markets due to the rapid spread of the Omicron Covid variant, which threatens the recovery of the world's largest economy.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at 978.57 metric tonnes.

Oil prices fell on Tuesday, deepening losses for the third straight day, diving near the 3-week low hit yesterday, due to lingering fears over the global demand for fuel and increasing market surplus, due to the rapid spread of the Omicron variant.

US crude fell 0.9% to $68.59 a barrel, after opening at $69.19, and hit a high at $69.75, and Brent crude fell 1.1% to $71.26 a barrel, after opening at $72.09, and hit a high at $72.50.

The US crude lost 1.6% yesterday, and hit a 3-week low at $66.15, and Brent fell 1.2%, and hit the lowest level since December 3 at $69.30, due to concerns about global demand.

Concerns are still lingering in the energy markets due to the rapid spread of the Omicron Covid variant, which forced some global governments to consider re-imposing lockdown restrictions that are expected to impact fuel demand.

Experts expect the UK to re-impose restrictions sometime after Boxing Day December 26, especially after the daily infections rose to record levels.

British Prime Minister Boris Johnson said on Monday the he would tighten restrictions to slowdown the spread of the Omicron variant if needed, which comes after the Netherlands went into lockdown, with more lockdown restrictions looming before the Christmas and New Year holidays in many European countries.

Omicron cases are doubling rapidly in the US and Europe, and in 1.5 to 3 days in London and many other parts of the world, which has renewed concerns about the impact on the global economic recovery.

USD/JPY tilted higher in Asian trade off December 6 lows amid a lack of data from Japan and ahead of US data today.

As of 06:10 GMT, USD/JPY rose 0.16% to 113.75, with an intraday high at 113.77.

Bank of Japan's policymakers voted to maintain rates at a negative 0.10% as expected, while deciding to extend its financial support program for the coronavirus for another 6 moths until late September 2022.

BoJ Governor Haruhiko Kuroda noted the constant economic uncertainty, now due to the Omicron variant, while adding that a weaker yen is favorable to Japanese exports.

From the US, current account deficit is expected up to $206 billion from $190 billion in the second quarter.

following the December 14-15 meeting, at which policymakers decided to maintain rates at below 0.25% while doubling the rate of reducing the bonds purchases program to $30 billion a month.

The Fed now expects 3 rate hikes in 2022, and another three in 2033, and two hikes in 2024.

Fed Chair Jerome Powell said that controlling inflation is the key now to support a sustained economic expansion, however it's a highly complex issue especially with the advent of Omicron.

Oil prices fell on Monday, despite the US dollar's slip, weighed down by growing concerns about the Omicron variant.

Several European countries, such as the UK, started to see record daily spike in Covid-19 infections due to the Omicron outbreak, which threatens another lockdown and closures.

Countries such as Denmark, Norway and Austria have also tightened restrictions on citizens, especially on the unvaccinated.

The American biotech frim Moderna reported that a booster shot of its vaccine protect from Omicron infection.

The World Health Organization said that Omicron cases appeared in more than 90 countries, with over 1000 cases in 43 US states so far.

The dollar index fell against a basket of major currencies by 0.1% to 96.4 points as of 18:45 GMT, after hitting a high of 96.6 points and a low of 96.3 points.

WTI January futures fell 4.1% to $67.9 a barrel, as of 18:43 GMT.

Brent February futures fell 3.5% to $70.9 a barrel.