Gold prices rose on Tuesday, to extend recovery for the third straight day and hit a 1-week high, thanks to strong retail demand and the US dollar's fall.

Gold prices rose 1.0% to the highest since February 2 at $1,848.57 an ounce, after opening at $1,829.98, and hit a high of $1,828.89.

The yellow metal gained 0.9% on Friday, and posted the second straight straight daily, within recovery attempts from a 2-month low of $1,784.94.

The dollar index fell more than 0.4% today, extending its losses for the third straight day, which weighs down on the prices of gold and other dollar-denominated metals.

The US dollar fell due to a slowdown in demand, while the US stocks jumped to new highs thanks to improved risk appetite.

Gold prices are rising thanks to strong retail demand and bargain hunting after prices fell to a 2-month low, in addition to finding support around the $1,800 barrier.

Gold stocks at the SPDR ETF fell 4.08 metric tonnes yesterday, with the total at the lowest level since June 12 of 1,152.43 metric tonnes.

Asian stock indices opened the second session of the week mostly higher, with Japan, China, Hong Kong, and South Korea gaining ground, while Australia and New Zealand declined, as markets price in promises from the new US administration to expand the jobless benefits scheme, and as vaccination efforts spread around the globe. 

From Japan, average incomes fell 3.2% in December, compared to a1.8% drop in November,

The M2 money supply rose 9.4%, up from 9.1% in December, as machine tool orders rose 9.7% last month. 

From Australia, the current conditions index fell to 7 from 14, while New Zealand's two-year inflation estimates rose to 1.89% from 1.59%. 

Japan's TOPEX rose 0.04% to 1,924, while Nikkei 225 climbed 0.37% to 29,497. 

China's CSI 300 rose 1.39%, while Shanghai advanced 1.14% to 3,572. 

Hong Kong's Hang Seng rose 0.10%, while South Korea's KOSPI climbed 0.51% to 3,106. 

New Zealand's NZX 50 fell 0.78%, while Australia's S&P/ASX 200 declined 0.57% to 6,841. 

USD/JPY tilted lower in Asian trade off October 2020 highs to the lowest since February 2, following earlier Japanese data and ahead of some US data. 

As of 07:00 GMT, USD/JPY fell 0.30% to 104.91, with a week low at 104.84. 

From Japan, average incomes fell 3.2% in December, compared to a1.8% drop in November,

The M2 money supply rose 9.4%, up from 9.1% in December, as machine tool orders rose 9.7% last month. 

From the US, the JOLTS job opportunities are expected down to 6.42 million from 6.53 million in November.

Last week data showed unemployment fell to 6.3% from 6.7% in December. 

The US economy added 49 thousand news jobs last month after losing 227K in December, while average income rose 0.2%, slowing down from 1% in December. 

The Japanese yen rose against the US dollar on Monday, after the release of upbeat economic data, and US stimulus hopes.

The US The Senate has passed the US President Joe Biden administration's stimulus plan to quickly overcome the pandemic impact.

US Treasury Secretary Janet Yellen stated that Joe Biden's plan could generate enough growth to restore full employment by 2022.

Data showed today that the Japanese current account a surplus of 2.28 trillion yen, beating forecasts of 2.21 trillion yen.

Japan’s economy watchers sentiment index reached 31.2 points last month, beating forecasts of 30.5 points.

As of 21:10 GMT, USD/JPY fell 0.1% to 105.2, after hitting a high of 105.6 and a low of 105.1.