Gold prices fell on Wednesday, to head for the second straight daily loss, on profit-taking from a 3-week high, as the US dollar rebounded against most of its rivals.

Gold prices fell 0.7% to $1,790.27 an ounce, after opening at $1,802.91, and hit a high of $1,803.15.

Gold closed lower by 0.1% yesterday, due to profit-taking from a 3-week high at $1,809.60 an ounce.

The dollar index rose 0.1% today, to head for the first daily gain in 4 days against a majority of rivals, which weighs down on dollar-denominated metals prices. 

Head of the US National Institute of Allergy and Infectious Diseases Dr. Anthony Fauci said that his country may succeed in containing the coronavirus pandemic by early 2022.

This eased the market's fears over the pandemic impact on the US economy's recovery, and boosted the chances of the Federal Reserve to start tightening the monetary policy soon.

Investors await more cues on the matter, especially with focus on the Federal Reserve Chairman Jerome Powell's speech this week at Jackson Hole Conference.

Gold stocks at the SPDR ETF fell 2.03 metric tonnes yesterday, with the total at the lowest level since April 9, 2020 at 1,004.63 metric tonnes.

Oil prices fell on Wednesday, on track for the first daily loss in 3 days on profit-taking, but today's losses are being curbed after preliminary data showed a drop in the US crude inventories, ahead of the official data later today.

US crude fell 1% to $66.95, after opening at $67.61, and hit a day high at $67.67, and Brent crude fell 0.6% to $70.54, after opening at $70.99, and hit a day high at $71.10.

US crude gained 3.25% yesterday, and hit a 2-week high at $67.78, and Brent crude futures rose 3.6%, and hit the highest since August 13 at $71.24.

The strong gains during the past 2 days came based on hopes of improved global demand, after the US authorities granted full approval for the use of the Pfizer-BioNTech vaccine, while refining activity increased in India

The American Petroleum Institute reported in preliminary data that the US crude inventories fell 1.6 million barrels during the week ending August 20, while analysts forecast a drop by 1.5 million barrels.

The total US commercial inventories fell to 436.9 million barrels, which is the lowest level since the week ending January 31, 2020, in a positive sign of the US domestic demand.

The US Energy Information Administration's official data will be released later today, amid forecasts for inventories to drop by 1.9 million barrels.

Euro rose in European trade on Wednesday against dollar for fourth straight session as demand weakens on dollar ahead of US data that will help determine the likely date of Fed's policy tightening.

EUR/USD rose 0.1% to 1.1759, with an intraday low at 1.1727, after closing up 0.1% yesterday, the third profit in a row on improved risk appetite in the markets. 

The dollar index declined over 0.1% on Wednesday for the fourth straight session on track to hit a week low at 92.80. 

Dollar's decline comes as haven demand recedes while investors for more US data to gauge the pace of economic recovery. 

US stock indices rose on Tuesday, as Nasdaq and S&P 500 hit new record closing levels, thanks to continued optimism about the coronavirus vaccines.

Optimism increased in markets after the US Food and Drug Administration (FDA) has given full approval for the Pfizer-BioNTech Covid-19 vaccine.

Stocks, commodities came under pressure recently, as many countries are facing a new wave of Covid-19 infections, which has forced most of them to re-impose lockdown restrictions.

This came after the mutated Delta variant emerged in some countries, which is characterized by its fast transition and an increased death rate.

To the oil market, WTI crude October futures rose 2.9% or $1.90, and closed at $67.54 a barrel.

Brent October futures rose 3.3% or $2.30, and closed at $71.05 a barrel.

As for stocks, Dow Jones rose 0.1% or 213 points, and closed at 35,366, with a day high of 35,445 , and a low of 35,356.

S&P 500 rose 0.1% or 6 points to 4,486, after hitting a high of 4,492, and a low of 4,482.

Nasdaq rose 0.5% or 77 points to 15,019, with a high of 15,034 and a low of 14,965.