Gold prices fell on Monday, as the US dollar rose against most of its rivals, due to growing chances of the near tightening of the US monetary policy following upbeat economic data and bullish statements by several Federal Reserve officials.

Gold prices fell 0.3% to $1,783.81 an ounce, after opening at $1,788.40, and hit a high of $1,793.68.

Gold closed lower by 0.3% on Friday, the fourth loss in 5 days, as investors focused on buying the US dollar.

Gold prices lost 2.1% last week, the first loss in 5 weeks, due to a rise in the US 10-year Treasury bond yields.

The dollar index rose 0.3% on Friday for another session, marking three-week highs at 92.88 against a basket of major rivals.

The gains come on the back of upbeat inflation data in the US, which might pave the way for a reduction in the bonds purchases program sooner than expected.

Data showed on Friday that US producer prices index rose more than expected in August, as the index is considered a key gauge of the the US inflation rate, which reflects the continued inflationary pressures on the Federal Reserve.

This increased the chances of the Fed to start reducing the bonds purchases program sooner than expected.

Loretta Meester, President of the Federal Reserve Bank of Cleveland said on Friday that she still wanted the US central bank to start reducing asset purchases this year.

Philadelphia Federal Reserve President Patrick Harker said Monday that US bond investors seem to believe that the recent economic slowdown will not be enough to delay tapering the bond-buying program gradually.

Gold stocks at the SPDR ETF remained unchanged on Friday, with the total at the lowest level since April 9, 2020 at 998.17 metric tonnes.

The US dollar rose on Monday against a basket of major currencies, and hit a 3-week high while on track for the second straight daily gain, thanks to renewed demand for the greenback as the best available investment, due to growing chances of the near tightening of the US monetary policy following upbeat economic data and bullish statements by several Federal Reserve officials.

The dollar index rose 0.8% to the highest since August 27 at 92.88 points, after opening at 92.62 points, and hit an intraday low at 92.61 points.

The greenback gained 0.15% on Friday, after better-than-expected US producer prices data.

The dollar index gained 0.6% last week, the first weekly gain in 3 weeks, thanks to renewed demand.

Data showed on Friday that US producer prices index rose more than expected in August, as the index is considered a key gauge of the the US inflation rate, which reflects the continued inflationary pressures on the Federal Reserve.

This increased the chances of the Fed to start reducing the bonds purchases program sooner than expected.

Loretta Meester, President of the Federal Reserve Bank of Cleveland said on Friday that she still wanted the US central bank to start reducing asset purchases this year.

Philadelphia Federal Reserve President Patrick Harker said Monday that US bond investors seem to believe that the recent economic slowdown will not be enough to delay tapering the bond-buying program gradually.

Euro fell on Monday against a basket of major rivals for another session, marking three-week lows as demand climbs on the greenback following strong US producer prices data, which bolstered the case for a policy tightening sooner than expected.

EUR/USD fell 0.3% to 1.1774, the lowest since August 27, after closing down 0.1% on Friday, the fourth loss in five days following strong producer prices data in the US.

Euro fell 0.6% against dollar last week, the first weekly loss in three weeks on renewed concerns over divergent US-European monetary policies. 

The dollar index rose 0.3% on Friday for another session, marking three-week highs at 92.88 against a basket of major rivals.

The gains come on the back of upbeat inflation data for the US, which might pave the way for a reduction in the bonds purchases program sooner than expected.

Several Fed officials issued bullish remarks as well on the step of reducing bonds purchases, bolstering the case for the dollar. 

US stock indices closed lower on Friday, after rising earlier following the release of upbeat economic data, but concerns over the coronavirus pandemic pushed Wall Street to fall again.

The US Transportation Security Administration decided to increase the fine for refusing to wear a mask in public transportation to $3,000.

This comes amid concerns over the coronavirus pandemic, especially after the new highly transmissible delta strain emerged, which sparked worries over the global economic recovery.

Data showed that the US producer price index for August rose 0.7%, slightly higher than forecasts of 0.6%.

The producer price index core reading (excluding food and fuel prices) was at 0.6%, higher than forecasts of 0.5%.

To the oil market, WTI crude October futures rose 2.3% or $1.58 , and closed at $69.72 a barrel, with a weekly gain of 0.6%.

Brent November futures rose 2% or $1.47, and closed at $72.92 a barrel, with a weekly gain of 0.4%.

As for stocks, Dow Jones fell 0.8% or 271 points, and closed at 34,607, and posted a weekly loss of 2.2%, with a day high of 35,104, and a low of 34,599.

S&P 500 fell 0.7% or 34 points to 4,458 and posted a weekly loss of 1.7%, after hitting a high of 4,520 and a low of 4,457 points.

Nasdaq fell 0.8% or 132 points to 15,115, and registered a 1.6% weekly loss, with a high of 15,349 and a low of 15,111.