Brent crude continued to fall as the US market opened on Monday, deepening losses for the second straight day due to profit-taking from a 6-week high, and fears over the Indian demand as the coronavirus crisis worsens in the world's third largest oil consumer.

Brent fell 0.9% to $66.12 a barrel, after opening at $66.73, and hit a low of $67.12.

Brent crude lost 2.75% on Friday, its first loss in 4 days, due to profit-taking from a 6-week high of $68.94 a barrel.

Oil prices gained 6.25% on April, the fifth monthly gain in 6months, thanks to expectations of improved global demand during the second half of 2021.

The coronavirus crisis continued to escalate in India despite local and global efforts to contain it, with rising new cases and deaths to new record levels for the 12th day.

Covid-19 cases have surpassed 20 million people, which makes India the second worst country impacted by the pandemic.

With overwhelmed hospitals and morgues, and deaths continued to mount, the Indian authorities tightened the lockdown restrictions in large parts of India, which weighs down on fuel demand in the world's third largest oil consumer, which forced refiners to cut operations.

The US dollar fell on Monday, and paused its 2-day recovery from a 2-month low following a drop in the 10-year US treasury yields this week, and ahead of the release of key data in the US manufacturing sector in April.

The dollar index fell over 0.5% to 91.08 points, after opening at 91.29 points, and hit a high of 91.38 points.

The US dollar gained 0.75% on Friday, its second straight daily gain, within recovery attempts from a 2-month low of 90.42 points.

In terms of last month's transactions, the US dollar index lost 2.1%, in its first monthly loss this year, due to the high risk appetite that dominated investors, after the US Treasury bond yield fell to its lowest level in five weeks, in light of repeated assurances by officials. Federal Reserve, that the rise in inflation in the recent period is temporary.

The greenback lost 2.1% last month, and posted its first monthly loss this year, due to the improved risk appetite after the US Treasury bond yield fell to a 5-week low, the successive assurances by Fed officials that the recent rise in inflation is temporary.

The 10-year US treasury yields this week, after US Treasury Secretary Janet Yellen on Sunday tamped down concerns that President Joe Biden's plans for infrastructure, jobs and families will cause inflation, saying the spending will be phased in over a decade

At 14:00 GMT, the ISM manufacturing PMI is expected up to 65.0 points in April from 64.7 points in March.

At 18:20 GMT, Federal Reserve Chairman Jerome Powell will speak about community development at an online conference, audience questions are expected.

Gold prices rose on Monday, to head for the first daily gain in 3 days, within recovery attempts from a 2-week low, while the US dollar fell against other major currencies.

Gold prices rose 0.75% to $1,781.63 an ounce, after opening at $1,768.43, and hit a low of $1,766.11.

Gold closed lower by 0.2% on Friday, in its second straight daily loss, and hit a 2-week low at $1,756.04 an ounce.

The yellow metal gained 3.6% last month, and posted the first monthly gain in 2021, thanks to a drop in US Treasury bonds.

The dollar index fell 0.2%, and paused its 2-day recovery from a 2-month low.

This comes as the market's risk appetite improved following a drop in the 10-year US treasury yields this week.

US Treasury Secretary Janet Yellen on Sunday tamped down concerns that President Joe Biden's plans for infrastructure, jobs and families will cause inflation, saying the spending will be phased in over a decade

At 18:20 GMT, Federal Reserve Chairman Jerome Powell will speak about community development at an online conference, audience questions are expected.

Gold stocks at the SPDR ETF remained unchanged on Friday, with a total at the lowest level since April 14, 2020 at 1,019.66 metric tonnes.

USD/JPY tilted higher in Asian trade away from March 4 lows amid a lack of data from Japan due to a bank holiday and ahead of US data today.

As of 06:52 GMT, USD/JPY rose 0.36% top 109.63, with an April 13 high at 108.71, and a session low at 109.19. 

From the US, the Markit manufacturing index is expected up to 60.7 from 60.6, while construction spending is expected up 1.7% in March. 

US ISM manufacturing PMI is expected up to 65.0 from 64.7 in March, while manufacturing prices are estimated up to 86.0 from 85.6. 

Federal Reserve Chair Jerome Powell is due to speak about community development at an online conference hosted by the National Community Reinvestment Coalition.