Gold prices rose on Wednesday, to resume gains after taking a pause yesterday, rising near a 1-week high, while the US dollar fell after Fed Chief Jerome Powell's semi-annual testimony before the US Congress.

Gold prices rose more than 0.4% to $1,813.83 an ounce, after opening at $1,806.12, and hit a day low at $1,803.07.

The yellow metal closed lower by 0.2% yesterday, in its first daily loss on profit-taking from a 1-week high of $1,816.04 as the US dollar fell.

The dollar index fell more than 0.2% today, and hit a week low of 89.94 points.

US Federal Reserve Chairman Jerome Powell stressed during his semi-annual testimony before the Senate Banking Committee that employment and inflation rates are still far from the Fed's goals, and interest rates would remain low while and the bonds-buying program will continue.

At 15:00 GMT, Fed Chair Jerome Powell will testify before the US House of Representatives Finance Committee, via satellite.

Gold stocks at the SPDR ETF fell 4.94 metric tonnes yesterday, with the total at the lowest level since May 14, 2020 at 1,110.44 metric tonnes.

Oil prices rose on Wednesday, resuming gains after taking a pause yesterday, on profit-taking from a 13-month high, and after the API showed in preliminary data an unexpected build in the US crude inventories, while investors are waiting for official data by the EIA, amid estimates of supply shortages during the first quarter of 2021.

US crude rose 1.5% to $62.13 a barrel, after opening at $61.22, and hit a low of $60.99, and Brent crude rose 1.4% to $65.96 a barrel, after opening at $65.03, and hit a low of $64.81.

US crude lost 5.5% yesterday, on profit-taking a 13-month high of $62.97, while Brent crude futures fell 1.2%, after it hitting the highest since January 2020 at $66.76.

The American Petroleum Institute (API) revealed yesterday in preliminary data that the US crude inventories rose by about 1 million barrels during the week ending 19, beating forecasts of a drop by 5.2 million barrels.

While the US Energy Information Administration's official data will be released later today, amid forecasts for inventories to fall by 6.5 million barrels.

Goldman Sachs Group estimated that the oil market would have a deficit during the first quarter of 2021, as the global demand for fuel would recover, in addition to OPEC-Plus supply cuts and Saudi Arabia's 1 million barrels voluntary cut in February and March.

Morgan Stanley also projected that the global oil market suffers from supply shortage of about 2.8 million barrels per day, and raised its forecast for Brent crude during the third quarter to reach $70 a barrel.

USD/JPY tilted higher in Asian trade away from February 15 lows, amid a lack of data from Japan and ahead of US data later today, including the second half of Fed Chair Jerome Powell's testimony. 

As of 06:59 GMT, USD/JPY rose 0.29% to 105.56, with an intraday low at 105.19. 

From the US, new home sales are expected up 2.1% to 853 thousand, compared to a 1.6% increase in December to 842 thousand. 

Fed Chair Jerome Powell said in his Congressional testimony that employment and inflation remain far from current targets, while interest rates will remain low to support the economy. 

Sterling rose in European trade for the fifth straight session against dollar above $1.42 for the first time in three years, as UK economy recovers faster than expected following vaccination efforts. 

GBP/USD rose 0.9% to 1.4238, the highest since April 2018, with a session low at 1.4100. 

Sterling rose 0.35% above 1.4, marking the fourth profit in a row, after the dollar index declined 0.2% to six-week lows at 89.94. 

Fed Chair Jerome Powell said in his Congressional testimony that employment and inflation remain far from current targets, while interest rates will remain low to support the economy. 

The sterling is boosted by hopes of UK recovery amid massive vaccination efforts and plans to relax economic lockdowns.