The US dollar fell on Thursday, to pull back from its 4-month peak on profit-taking, which comes ahead of the reasele of key inflation data in the US for January.

The dollar index fell 0.2% to 98.85 points, after opening at 98.99, and hitting a day high and highest since Oct. 10 at 99.06 points.

The greenback gained 0.3% on yesterday, to post its seventh daily gain in 8 days, and the largest in a week.

These gains are due to increased demand for the US currency after the release of successive strong data that raised confidence in the US economic growth path in the first quarter of 2020.

Fed Chair Jerome Powell stated before the House Financial Services Committee on Tuesday that the US economy is doing well, ruling out any reasons that could hinder the growth rate, and added that the current interest rates are appropriate to support economic growth.

Powell said before the Senate Banking Committee on Wednesday, that there is no reason that should stop growth as the unemployment is low, wages are high, and new jobs are added.

Investors are anticipating the release of the key US inflation data for January, should the data show positive performance, the US dollar will extend its surge to new highs, which will impact gold and other dollar-denominated metals.

At 13:30 GMT, the CPI annual reading will be released, with forecasts to rise by 2.4% in January vs. 2.3% in December, and the monthly reading is expected to rise by 0.2% unchanged from previous reading.

The main US stock indices opened lower on Thursday, weighed down by sharp losses in the technology sector and the lingering concerns over the coronavirus.

China revealed today that the coronavirus death toll rose to more than 1,360 victims, and infected about 60,000 cases.

Fed Chair, Jerome Powell, said before the US Senate yesterday that the Fed might use more quantitative easing, adding that the fiscal policy is as important as monetary policy in combating any upcoming recession.

Data showed today that the jobless claims in the US increased by 2,000 to 205K during the past week, while the CPI reading for January rose by 0.1%.

As for stocks, Dow Jones fell by 0.6% or 185 points to 29,360 as of 15:06 GMT, Nasdaq lost 0.5% or 51 points to 9,674, and S&P 500 lost 0.2% or 7 points to 3,372.

European stocks fell on Thursday, heading for the first daily loss in 4 days, and pulling back from all-time highs on profit taking, on fears over the acceleration of the coronavirus spread in China.

The Stoxx Europe 600 index was lower by 1.1% at 11:35 GMT, after it closed higher by 0.6% yesterday, in its third daily gain after reaching its all-time high of 431.16 points.

Yesterday's surge was due to a global risk-on move, especially at Wall Street, after official data showed a slowdown in new cases of the coronavirus in China.

The European pan index opened today's session lower, on the cusp of its first daily loss in 4 days, and pulling back from all-time highs on profit taking, with most of the major European exchanges and sectors falling today.

The mining sector saw the sharpest losses in Europe today, dropping more than 1.9%, followed by the automobile sector with a drop by 1.6%, due to mounting fears over the coronavirus outbreak and its impact on the Chinese economy.

The Chinese health authorities revealed in press conference today that new cases of coronavirus rose to 15,152, the largest daily increase since the epidemic emerged, and claimed 254 victims, the largest death toll in a single day.

The rise in the number of new cases is due to applying a new diagnostic method, using CT scans that can diagnose the virus more quickly, compared to the traditional method of DNA testing.

This showed that the number of infected cases rose to 59,804, and the death toll rose to a total of 1,367 victims.

The IMF Managing Director, Kristina Georgieva, told CNBC TV yesterday that the novel coronavirus has a sharper impact on the global economy than SARS in 2002/03.

S&P 500 futures shed 0.9% today, after the index closed higher by 0.7% yesterday at Wall Street, posting its third consecutive daily gain and its record high of 3,381.47.

Back to Europe, the Euro Stoxx 50 index lost 1.2%, France's CAC 40 fell by 1.1%, and the UK's FTSE 100 fell by 1.6%.

While the German DAX lost 1.0%, on profit taking after it reached its all-time high of 13,758.70 points.

Gold prices rose during European trade on Thursday, to 1-week high, on risk-aversion after new cases of coronavirus accelerated, in addition to a retreat in the US dollar ahead of major US data.

Gold prices rose 0.75% to $1,577.47 an ounce, after opening at $1,565.50, and hitting an intraday low of $1,565.45.

The yellow metal lost 0.2% yesterday, to post its second daily loss, amid a slowdown in safe-haven demand, in addition to a surge in most global stock markets, led by Wall Street. 

The Chinese health authorities revealed in press conference today that new cases of coronavirus rose to 15,152, the largest daily increase since the epidemic emerged, and claimed 254 victims, the largest death toll in a single day.

The rise in the number of new cases is due to applying a new diagnostic method, using CT scans that can diagnose the virus more quickly, compared to the traditional method of DNA testing.

This showed that the number of infected cases rose to 59,804, and the death toll rose to a total of 1,367 victims.

The dollar index fell 0.1% today, pulling back from its 4-month high of 99.05 points, reflecting a drop against other major currencies.

Investors are anticipating the release of the key US inflation data for January, should the data show positive performance, the US dollar will extend its surge to new highs, which will impact gold and other dollar-denominated metals.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the highest level since Oct. 18 of 922.23 metric tonnes.