Gold prices fell on Monday, and gave up a 2-week high hit earlier due to profit-taking, to head for the first daily loss in 3 days, as the safe-haven demand slowed down while investors' risk-appetite improved.

Gold prices fell 0.75% to $1,748.78 an ounce, after opening at $1,762.10, and hit a high of $1,765.65.

Gold closed higher by 0.2% on Friday, the second straight daily gain within recovery from a 7-week low, and after the US Treasury bond yield's rally halted.

Gold prices gained 0.5% last week, the first weekly gain in a month, as the Chinese demand improved.

Safe-haven demand slowed after the interim results of the clinical trials of an experimental oral COVID-19 antiviral drug showed it reduces the risk of hospitalization or death by almost half, after a pill of the drug “Molnupiravir” was administered twice daily to patients.

The US company Merck said that the results of the orally administered drug are so positive that it will apply for an emergency use license for the drug in the US in two weeks.

Gold stocks at the SPDR ETF fell by 3.49 metric tonnes on Friday, with the total at the lowest level since April 7, 2020 of 986.54 metric tonnes.

Euro rose in European trade against dollar for another session off 14-month lows, as haven demand tapers off on the dollar while risk appetite improves following encouraging pill treatment results for Covid 19.

EUR/USD rose 0.2% to 1.1616, with an intraday low at 1.1587, after closing up 0.1% on Friday, the first profit in six days away from 14-month lows at 1.1562.

Euro fell 1.1% last week, the fourth weekly profit in a row against dollar, on mounting concerns over divergent US-European policies.

The dollar index fell 0.2% on Monday for the third straight session on profit-taking off year highs at 94.50. 

Dollar's decline comes as appetite improves in markets and rick purchases spread.

Initial medical results showed that experimental drugs to treat Covid 19 is cutting down death and hospitalization rates by nearly 50%.

US stock indices rose on Friday, after the release of key economic data, and consolidated gains, but that was not enough to avoid posting weekly losses.

Data showed that the US personal consumption expenditures index - the Fed's indicator of inflation - rose 3.6% y/y a 30-year high, unchanged from July.

The US Personal Income Index rose by 0.2% in August for the third straight month.

The final reading of the US GDP for the second quarter showed a growth by 6.7%, higher than forecasts of 6.6%.

The ISM US manufacturing PMI rose to 61.1 points in September while analysts forecast a drop to 59.6.

To the oil market, WTI crude November futures rose 1.1% or 85 cents, and closed at $75.88 a barrel, with a weekly gain of 2.6%.

Brent futures rose 1% or 76 cents, and closed at $79.28 a barrel, and posted a weekly gain of 2.6%.

As for stocks, Dow Jones rose 1.4% or 482 points, and closed at 34,326, and posted a weekly loss of 1.4%, with a day high of 34,490, and a low of 33,785.

S&P 500 rose 1.1% or 49 points to 4,357, with a 2.2% loss this week, after hitting a high of 4,375 and a low of 4,288 points.

Nasdaq rose 0.8% or 118 points to 14,566, and registered a 3.2% weekly loss, with a high of 14,606 and a low of 14,324.

Silver prices rose on Friday, as the US dollar fell against its peers, after the release of key economic data.

Data showed that the US personal consumption expenditures index - the Fed's indicator of inflation - rose 3.6% y/y a 30-year high, unchanged from July.

The US Personal Income Index rose by 0.2% in August for the third straight month.

The dollar index fell against a basket of major currencies by 0.2% to 94.01 points as of 18:01 GMT, after hitting a high of 94.3 points and a low of 94 points.

As of 18:02 GMT, silver spot prices rose 2.3% to $22.5 an ounce, with a high at $22.6 and a low at $21.9.