Gold prices rose on Tuesday, and resumed gains after hitting a pause yesterday, rising near 4-month high thanks to a drop in the US dollar against its peers.

Gold prices rose 0.4% to $1,887.30 an ounce, after opening at $1,880.01, and hit a high of $1,872.64

Gold closed lower by 0.1% yesterday, on profit-taking from a 4-month low of $1,890.11 an ounce.

The US dollar fell against its peers today, deepening losses for the second straight day and hit a 4-month low at at 89.53 points, which makes gold and other dollar-denominated metals cheaper for other currencies holders..

The US Federal Reserve repeatedly assured that interest rates will remain low while continuing to buy bonds until inflation rises and the labor market fully recovers, this came after the release of disappointing jobs data, which lowered bets for early tightening of US monetary policy before 2023.

Gold stocks at the SPDR ETF rose 3.2 metric tonnes yesterday, with the total at the highest level since March 19 at 1,046.12 metric tonnes.

The US dollar fell against its peers on Tuesday, deepening losses for the second straight day and hit a 4-month low as the US T-bond yields fell, ahead of key US data, 

The dollar index fell 0.4% to the lowest since January at 89.53 points, after opening at 89.85, and hit its intraday high at 89.86 points.

The index lost 0.2% yesterday, its second daily loss in 3 days, due to investors' appetite in high-risk currencies.

The 10-year US Treasury bond yields fell 1.1% today, extending losses for the fourth straight day and hit a 2-week low at 1.588%, which improved the market risk appetite.

The US Federal Reserve repeatedly assured that interest rates will remain low while continuing to buy bonds until inflation rises and the labor market fully recovers, this came after the release of disappointing jobs data, which lowered bets for early tightening of US monetary policy before 2023.

At 14:00 GMT, the CB Consumer Confidence Index reading will be released, amid forecasts to reach 119.0 points in May, from 121.7 in April.

USD/JPY tilted higher in Asian trade following a spate of data from Japan and ahead of US data and Fed speeches today. 

As of 06:54 GMT, USD/JPY rose 0.02% to 108.77, with an intraday high at 108.86. 

From Japan, core consumer prices fell 0.1% as expected last month, compared to no change in the previous reading. 

Federal Reserve Bank of Chicago President Charles Evans is due to to speak about the economy at an online event hosted by the Bank of Japan later today. 

From the US, housing prices are expected up 1.1% in March compared to a 0.9% increase in February, while S&P 20 housing prices index is expected up 12.6% in March. 

New home sales are expected down 7.5% in April to 950 thousand compared to a 20.7% surge to 1.021 million in March, while the consumer confidence index is expected down tp 119.0 from 121.7 in March. 

Oil prices rose on Monday, extending gains thanks to optimism over the global demand, while the US dollar fell against its peers.

Oil extended gains thanks to expectations about the gradual demand recovery and growth in many major economies around the world.

As efforts continue in controlling the Covid-19 outbreak, the US health authorities are preparing to reduce precautionary measures for vaccinated citizens.

The dollar index fell against a basket of major currencies by 0.2% to 89.8 points as of 16:30 GMT, after hitting a high of 90.1 points and a low of 89.8 points.

As of 16:30 GMT, WTI crude June futures rose 3.2% to $65.6 a barrel, with a day high of $65.7 and a low of $63.6.

Brent June futures rose 2.6% to $68.1 a barrel, after hitting a day high of $68.3 and a low of $66.4.