Gold prices fell on Monday, and pulled back from 2-month highs hit earlier on profit-taking, but today's loss remains limited as the US dollar fell against its peers, and amid hopes about demand in India.

Gold prices fell 0.3% to $1,812.43 an ounce, after opening at $1,818.31, and hit a high of $1,821.40.

Gold closed higher by 1.5% on Friday, the largest daily gain since October 13, thanks to the strong demand after several global central banks decisions.

Gold prices gained 1.9% last week, the largest weekly gain in 3 months, after cautious hints by several global central banks about interest rates increased safe-haven demand.

The US Federal Reserve stated last week that the rise in inflation is temporary and will not to require a fast interest rate hike, while the Bank of England surprised markets by keeping interest rates unchanged, after many expected a rate hike by a quarter-point.

The dollar index fell 0.1% today, and pulled back from its 14-month high of 94.62 points against a basket of major rivals, which lifts demand for dollar-denominated metals.

Gold stocks at the SPDR ETF remained unchanged on Friday, with the total at the lowest level since April 2, 2020 at 975.41 metric tonnes.

Oil prices rose on Monday, for the second day in a row, within recovery from a 4-week low, on global demand hopes after Saudi Aramco raised December's selling prices.

US crude rose 1.4% to $82.45 a barrel, after opening at $81.34, and hit a low at $81.07, and Brent crude rose more than 1.7% to $83.98 a barrel, after opening at $82.55, and hit a low at $82.55.

The US crude gained 2.5% on Friday after hitting a 4-week low at $78.28, and Brent rose 1.75%, after hitting the lowest since October 7 at $80.22 a barrel.

Oil prices lost 2% last week, the second straight weekly loss, due to US oversupply concerns and the resumption of Iranian nuclear talks.

Saudi Aramco raised its December official selling price for Arab light crude to $2.7 a barrel from $1.4 during November.

The move to increase export prices means that global demand is strong, and that the OPEC-Plus producers will not increase output higher than previously planned levels.

OPEC Plus decided last week to keep the production policy unchanged, with full commitment to the current supply ceiling, and disregarded several major countries repeated calls, led by the US and India, to increase production and curb prices to support the global economic recovery.

Sterling fell in European trade against dollar for the third straight session, on track to touch five-week lows, as markets still process the last Bank of England meeting results, and ahead of remarks by BoE Governor Andrew Bailey later today.

GBP/USD fell 0.2% to 1.3450, with an intraday high at 1.3496, after closing down 0.1% on Friday, the second loss in a row, and inching closer to five-week lows at 1.3424.

GBP/USD is down 1.4% this week, the second weekly loss in a row, and the largest since August.

Bank of England voted to maintain interest rates at 0.10%, countering estimates of a rate hike, with members divided on the path forward.

Investors await further clues on the future of UK monetary policy from BoE Governor Bailey later today, which will help nudge the movements of sterling throughout the week. 

Oil prices rose on Friday, as the US dollar fell against most of its counterparts, after OPEC Plus decision.

OPEC Plus announced yesterday to keep the production policy unchanged, with a production hike on nearly 400,000 barrels per day during December.

In response, the US Department of Energy announced that President Joe Biden is discussing tapping the emergency oil reserve.

This comes as gasoline prices are soaring in the US, which prompted Biden to pump more supply to lower prices.

Biden has repeatedly requested from OPEC Plus to increase oil supplies to lower prices.

The dollar index fell against a basket of major currencies by 0.1% to 94.2 points as of 17:00 GMT, after hitting a high of 94.6 points and a low of 94.2 points.

As of 16:54 GMT, WTI crude December futures rose by 3.1% to $81.2 a barrel.

Brent January futures 2.6% to $82.6 a barrel.