Gold prices rose on Wednesday, to head for the third gain in 4 days, thanks to a drop in the US Treasury bonds, ahead of key data in the US.

Gold prices rose 0.2% to $1,896.34 an ounce, after opening at $1,892.11, and hit a low of $1,887.28.

Gold lost 0.3% yesterday, marking its first daily loss in 3 days, due to a rebound in the US dollar.

The US 10-year Treasury yield fell 2% today to a 5-week low at 1.503%, which boosts the market's risk appetite.

Markets await US inflation data tomorrow, which would set estimates correctly for policy tightening by the Fed in the next few years. 

Gold stocks at the SPDR ETF remained unchanged yesterday yesterday, with the total at the lowest level since May 20 at 1,037.33 metric tonnes.

Euro rose in European trade against dollar after a hiatus from gains yesterday, as long term US treasury yields tumbled ahead of US inflation data and the European Central Bank meeting tomorrow. 

EUR/USD rose 0.2% to 1.2192, after closing down 0.1% yesterday, the first loss in three days after weak data on European and German market sentiment. 

US 10-year treasury yields fell over 2% for a second session, marking five-week lows at 1.503%, bolstering risk appetite. 

Markets await US inflation data today, which would set estimates correctly for policy tightening by the Fed in the next few years. 

The ECB is expected to maintain interest rates and monetary policies unchanged but might expound on the future of adjusting policies as the economy recovers from the Covid 19 pandemic. 

The American Petroleum Institute reported today in preliminary data that the US crude inventories fell 2.1 million barrels during the past week, while analysts forecaste a drop by 4.1 million barrels.

Gasoline stocks rose 2.4 million barrels, and the distillate stocks rose 3.8 million barrels.

While the Energy Information Administration will release its official report on Wednesday, which affects price movements.

The main US stock indices closed mixed on Tuesday, amid anticipation of key US inflation data.

The US goods and services deficit fell by 8.2% to $68.9 billion in April from $74.4 billion in March.

US inflation data this week will be an important focus to gauge inflationary pressures, which have been showing signs of rising recently and been weighing down on US stocks and bond markets. 

To the oil market, WTI crude July futures rose 1.2% or 82 cents, and closed at the highest level since October 2018 at $70.05 a barrel, after hitting a high of $69.8 and a low of $68.4.

Brent August futures rose 1.02% or 73 cents, and closed at $72.22 a barrel, after hitting a high of $71.9 and a low of $70.7.

As for stocks, Dow Jones fell 0.1% or 30 points, and closed at 34,599, with a day high of 34,665, and a low of 34,452.

S&P 500 rose less than 0.1% or 1 points to 4,227, after hitting a high of 4,236 and a low of 4,208.

While Nasdaq rose 0.3% or 43 points to 13,924, with a high of 13,981 and a low of 13,831.