Gold prices fell on Friday, deepening losses for the third straight day, falling below the $1900 barrier and hit a 1-week low, as the US dollar continued to rebound against a basket of major currencies, , ahead of the US monthly jobs report.

Gold prices fell 1.9% to the lowest since December 30 at $1,878.31 an ounce, after opening at $1,914.92 and hitting a high of $1,917.45.

The yellow metal lost 0.25% yesterday, and posted its second straight daily loss, on profit-taking from a 2-month high of $1,959.29.

The US dollar index rose 0.3% against a basket of major currencies today, extending its recovery for the third straight day from its 34-month low of 89.20 points.

Dollar's recovery came as 10-year treasury yields rose above 1% for the first time since March 2020 as sentiment improves in the markets. 

The recent Fed meeting minutes showed the Fed will notify markets repeatedly before deciding to change its bonds purchases program. 

Data this week showed that the US manufacturing sector grew in December at the best pace since August 2018, and the services sector grew better than expected, in strong signs on a quick recovery from the coronavirus repercussions.

Political tensions in the US eased after the Congress on Thursday ratified Joe Biden's victory of the US presidential election after President Donald Trump supporters stormed Capitol Hill exchanging fire with the security forces.

The outgoing President Donald Trump said that there would be an orderly transition of power after Congress confirmed Biden win.

The Democrats' Georgia Senate win allowed them to secure 50 seats on par with the Republican Party, which gives the elected Vice President Kamala Harris the tiebreaking vote and gives control to the Democrats over the Senate alongside the House of Representatives.

Investors are anticipating the US jobs report for December, which provides insight on the economy's performance during the fourth quarter amid the latest developments in the coronavirus crisis and the rising infections in several US states.

At 13:30 GMT, the US economy will reveal December's non-farm jobs report, amid forecasts of 60,000 new jobs vs. 245,000 jobs in November, and the unemployment rate is expected to rise to 6.8% from 6.7%, and the average hourly earnings is expected to rise by 0.2% from 0.3%.

Gold stocks at the SPDR ETF fell 4.67 metric tonnes yesterday, with the total at the lowest level since December 31 of 1,182.11 MT.

Euro tumbled in European trade for another session against the greenback to week lows on profit-taking away from 33-month highs, while the dollar is buoyed by increases in US treasury bond yields after Congress officially ratified Joe Biden's win as the next President of the United States.

EUR/USD fell 0.5% to 1.2213, the lowest since December 31, after closing down 0.45% yesterday, the first loss in four days. 

The dollar index rose 0.3% today for the third session away from three-year lows at 89.2. 

Dollar's gains came as 10-year treasury yields rose above 1% for the first time since March 2020 as sentiment improves in the markets. 

The recent Fed meeting minutes showed the Fed will warn markets repeatedly before deciding to scale back its bonds purchases program. 

US political tensions also receded after Congress officially ratified Joe Biden's win as the next President of the United States after hordes of Trump supporters stormed Capitol Hill in an attempt to disrupt the vote. 

US President Donald Trump also finally conceded to a peaceful and organized transfer of power after Congress' approval. 

USD/JPY tilted higher in Asian trade away from March 10 lows following earlier data from Japan and ahead of US data and Fed speeches later today. 

As of 07:09 GMT, USD/JPY rose 0.10% to 103.91, with the highest since mid December at 104.00. 

From Japan, household spending rose 1.1%, slowing down from 1.9% in October, while the leading index rose to 96.6 from 94.3. 

From the US, the payrolls report is expected to show an increase of 60 thousand new jobs in December, while unemployment is expected up to 6.8%. 

Wholesale inventories are expected down 0.1%, down sharply from 1.1% in October. 

US consumer credit is expected up to $9.2 billion in November from $7.2 billion in October. 

Federal Reserve Governor Richard Clarida is due to speak about the US economy and monetary policy at a virtual event hosted by the Council on Foreign Relations.

Congress officially ratified Joe Biden's win as the next President of the United States after hordes of Trump supporters stormed Capitol Hill in an attempt to disrupt the vote. 

The British pound fell against the US dollar on Thursday, as the coronavirus crisis continues to escalate in the UK and several other countries.

The daily number of Covid infections in Britain is increasing faster compared to the first wave, as the country is currently reporting an average of about 60,000 cases per day.

British Prime Minister Boris Johnson to declare full lockdown from January until mid-February.

This comes within UK's fight against the new Covid-19 strain, which spreads more quickly and has spread to some countries such as South Africa and India.

As of 20:37 GMT, GBP/USD fell 0.3% to 1.3564, after hitting a high of 1.3633, and a low of 1.3534.