Gold prices rose on Wednesday, to extend gains for the fourth straight day, thanks to strong retail demand and the US dollar's fall.

Gold prices rose 0.5% to $1,846.99 an ounce, after opening at $1,837.97, and hit a high of $1,834.08.

The yellow metal gained 0.4% yesterday, and posted the third straight daily gain, and a 1-week high of $1,848.57.

The dollar index fell 0.3% today, extending its losses for the fourth straight day, and hit a 2-week low of 90.25 points.

The US dollar fell due to a slowdown in demand, while the US stocks jumped to new highs thanks to improved risk appetite.

A falling US dollar lifts the prices of gold and other dollar-denominated metals, as it makes them cheaper for other currencies holders.

The greenback fell due to slowing demand and hopes over the economic recovery from the pandemic during this year thanks to the massive stimulus measures in most parts of the world, especially in the US.

Gold prices are rising thanks to strong retail demand and bargain hunting after prices fell to a 2-month low, in addition to finding support around the $1,800 barrier.

Gold stocks at the SPDR ETF fell 4.09 metric tonnes yesterday, with the total at the lowest level since June 12 of 1,148.34 metric tonnes.

European stocks rose in early trading on Wednesday, and resumed their rally after taking a pause yesterday on profit-taking, to jump again near a 3-week high as the market sentiment improved after upbeat earnings.

The Stoxx Europe 600 index rose 0.25% as of 11:16 GMT, after it closed lower by 0.2% yesterday, the first loss in 7 sessions, due to profit-taking from a 3-week high of 412.3 points.

The mining sector saw the largest gains in Europe today, rising around 2%, as most metal prices rose today in global markets.

Societe Generale Bank's share rose over 3% in early trading, after France's second largest bank reported 470 million euros net profit in the fourth quarter of 2020.

The Swedish Thule group's stock rose more than 8%, and the Dutch payment company Aden's share jumped 9%, after strong Q4 earnings reports.

S&P 500 futures fell more than 0.3%, after the index closed lower by 0.1% yesterday at Wall Street due to profit-taking from its record high of 3,918.35.

Back to Europe, the Euro Stoxx 50 index rose 0.3%, France's CAC 40 rose 0.2%, the UK's FTSE 100 added 0.5%, and Germany DAX index rose 0.2%.

Oil prices rose on Wednesday, extending gains for the eighth straight day, and hit a 13-month high, after the US crude inventories fell according to the American Petroleum Institute's preliminary data, and ahead of the Energy Information Administration's official report.

US crude rose 0.4% to its highest since January 2020 at $58.66 a barrel, after opening at $58.41, and hit a low of $58.13, and Brent crude rose 0.4% to the highest since January 2020 at $61.46 a barrel, after opening at $61.20, and hit a low of $60.90.

US crude yesterday rose 0.5% and Brent crude futures rose 0.8%, in the seventh straight daily gain, and the longest gaining streak since June 2019.

The American Petroleum Institute (API) revealed yesterday in preliminary data that the US crude inventories fell by about 3.5 million barrels during the week ending February 5, beating forecasts of a drop by 2.7 million barrels.

The total commercial inventories fell to 479 million barrels, the lowest level since the week ending April 3, 2020, which is considered a positive sign of the US domestic demand.

While the US Energy Information Administration's official data will be released later today, amid forecasts for inventories to fall by 0.9 million barrels.

USD/JPY tilted lower in Asian trade off October 12, 2020 highs, following earlier data from Japan and ahead of US data and Fed Chair Jerome Powell's speech.

As of 07:05 GMT, USD/JPY fell 0.05% to 104.55, with a session-low at 104.51, and a high at 104.71. 

From Japan, producer prices rose 0.4% as expected, compared to a 0.5% increase in December. 

From the US, consumer prices are expected up 0.3% in January, slowing from 0.4% in December. 

On a yearly basis, consumer prices are expected up 1.5% last month, while core prices are also expected up 1.5%, slowing from 1.6% in December. 

US wholesale inventories are expected up 0.1% in December, compared to no change in November. 

Finally, the US government will release its monthly budget, expected to show a deficit of $152.4 billion in January, up from $143.6 billion in December.