Gold prices rose on Wednesday, extending gains for the second consecutive day near a 4-week high, as the US dollar fell against most of its rivals ahead of key economic data in the US.

Gold prices rose 0.3% to $1,817.02 an ounce, after opening at $1,812.14, and hit a low of $1,809.27.

Gold closed higher by 0.2% yesterday, after dropping 0.4% on Monday, due to correction and profit-taking from its 4-week high of $1,823.30 an ounce.

The dollar index fell 0.1% today, deepening its losses for the fourth straight day, and hit its 1-month low at 92.46 points against a basket of its peers. 

Dollar purchases slowed down following recent bearish remarks by Fed Chair Jerome Powell, which pushed back the expected timeline for raising interest rates. 

Now investors await a variety of important US data this week, including private sector employment data which would help determine the likely path of interest rates. 

Gold stocks at the SPDR ETF fell 1.46 metric tonnes yesterday, with the total at the lowest level since April 9 at 1,000.26 metric tonnes.

Euro rose in European trade against dollar for the fourth straight session on track to hit four-week highs, amid prospects of tighter European monetary policies while investors await data on US labor market later today. 

EUR/USD rose 0.1% to 1.1817 after closing up 0.1% yesterday, the third profit in a row, marking four-week highs at 1.1845, following strong consumer sentiment data in Europe. 

Europe's consumer prices rose in August by the fastest pace since November 2011, marking a 3% increase and beating estimates of 2.7%. 

The data increased inflationary pressures on European policymakers and might force the ECB to tighten policy sooner than expected. 

The dollar index fell nearly 0.1% on Wednesday for the fourth straight session to near month lows at 92.46. 

The decline comes as dollar purchases slow down following recent bearish remarks by Fed Chair Jerome Powell, which pushed back the expected timeline for raising interest rates. 

Now investors await a variety of important US data this week, including private sector employment data which would help determine the likely path of interest rates. 

The American Petroleum Institute reported today in preliminary data that the US crude inventories fell 4 million barrels during the past week, while analysts forecast a drop by 4.4 million barrels.

Gasoline stocks rose 2.7 million barrels, and the distillate stocks fell 2 million barrels.

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

US stock indices closed slightly lower on Tuesday, but managed to post monthly gains in August.

Federal Reserve Chairman Jerome Powell said during the Jackson Hole Conference that the Fed will start tapering its asset purchases before the end of 2021, but will not start to raise interest rates soon.

A Fed official stated that the recent rise in inflation is still temporary, and it was not enough to be considered the Fed's targets.

Efforts to contain the coronavirus pandemic are continuing around the world, especially after the full approval of the Pfizer-BioNTech Covid-19 vaccine in the US.

WTI crude October futures fell 1% or 71 cents, and crude closed at $68.50 a barrel, and posted a monthly loss of 6%.

Brent October futures fell 0.6% or 42 cents, and closed at $72.99 a barrel, with a monthly loss of 3.2%.

As for stocks, Dow Jones fell 0.1% or 39 points, and closed at 35,360, and posted a monthly gain of 1.2%, a day high of 35,449, and a low of 35,289.

S&P 500 fell 0.1% or 6 points to 4,522, and posted monthly gains of 2.9%, after hitting a high of 4,531 and a low of 4,515.

Nasdaq fell 0.1% or 6 points to 15,259, and registered a 4% monthly gain, with a high of 15,278 and a low of 15,202.