Gold prices declined in European trade for the fourth straight session as the dollar index gains ground against major rivals ahead of Fed Chair Powell's testimony. 

Prices Today

Gold prices declined 0.5% today to $1,823 an ounce, after losing 0.2% yesterday, the third loss in a row on slow demand on the precious metal. 

The Dollar

The dollar index rose 0.5% after a two-day hiatus from gains against a basket of major rivals. 

a Higher dollar weighs heavily on gold prices and other dollar-denominated metals. 

Fed Chair Jerome Powell is testifying today ahead of Congress to provide more clues on the future of interest rates. 

The Fed took a historic decision last week by hiking rates by 75 basis points 1.75%, the highest such hike since 1994. 

Estimates 

Analysts now expect to head towards the barrier of $1,800 and possibly slide below it in the next few weeks if the Fed maintained bullish remarks. 

The SDPR 

Gold holdings at the SPDR Gold Trust fell 1.74 tones yesterday to a total of 1,073 tones. 

Sterling declined in European trade against dollar for the third straight session following UK inflation data. 

UK inflation data indicated inflation is rounding off its peak, which is cutting bets on BoE rate hikes by 50 basis points. 

Prices 

GBP/USD fell 0.9% to 1.2160, after rising 0.2% on Tuesday, the second profit in a row as dollar slows down. 

UK inflation

UK consumer prices rose 9.1% in May, the fastest such increase since 1989, matching estimates, and up from 9.0% in April.

Core prices, excluding food and energy, rose 5.9%, missing estimates of 6.0%, and down from 6.2% in April.

The core prices have dampened bets on an accelerated pace of BoE rate hikes this year. 

The Dollar

The dollar index rose 0.5% after a two-day hiatus from gains against a basket of major rivals. 

Fed Chair Jerome Powell is testifying today ahead of Congress to provide more clues on the future of interest rates. 

UK consumer prices rose 9.1% in May, the fastest such increase since 1989, matching estimates, and up from 9.0% in April. 

Core prices, excluding food and energy, rose 5.9%, missing estimates of 6.0%, and down from 6.2% in April.

Oil futures declined over 3% in Asian trade off March 9 highs, marking May 19 lows as the dollar index bounced off June 10 lows for another session, as markets price in economic slowdown, which will impact oil demand worldwide. 

As of 05:51 GMT, US crude futures due in July tumbled 3.82% to $105.51 a barrel, while Brent futures due in August slumped 3.28% to $110.93 a barrel, as the dollar index rose 0.26% to 104.71.

Reports indicated US President Joe Biden is considering a suspension of the federal tax on gasoline, estimated at 18.4 cents per gallon.

Now investors await Jerome Powell's testimony ahead of Congress later today.

Libya's energy minister Muhammad Ouna said total Libyan production hit 700 thousand bpd, up from just 150 thousand bpd last week amid continued struggles with rebels.

Otherwise, OPEC General Secretary Muhammed Barkindo asserted the organization is trying to maintain supplies, and opened the door for extending the OPEC + deal with Russia to beyond this year, depending on market conditions.

On the Ukrainian crisis, the Kremlin said the negotiations with Ukraine aren't going very well, especially after aggressive remarks by the Ukrainian government recently on the Crimean Bridge.

Ukrainian government asserted a goal to take back the Crimean Bridge once it acquire weaponry from the US and Europe.

Baker Hughes data showed US oil rigs rose by 4 rigs to 584 rigs last week, the second such increase in a row to March 2020 highs.

Oil rigs rose in May for the 22nd month in row, the longest such streak ever, while US output rose 100 thousand bpd last week to a total of 12 million bpd, the highest since April 2020.