Gold prices fell on Monday, deepening losses for the fourth straight day, on the cusp of falling below the $1800 barrier, as the US dollar continued to rise against a basket of major currencies.

Gold prices fell 1.7% to the lowest since December 2 at $1,817.31 an ounce, after opening at $1,848.90 and hitting a high of $1,856.73.

The yellow metal lost 3.5% on Friday, and posted its third straight daily loss, and the biggest daily loss since November 9.

Gold prices lost 2.5% during the past week, and posted the second weekly loss in 3 weeks and the loss since late November.

The US dollar index rose 0.5% against a basket of major currencies today, and hit a 3-week high of 90.52 points, extending its gains for the fourth straight day.

The dollar's rally came as the 10-year treasury yields rose above 1% for the first time since March 2020 as sentiment improves in the markets after the US political tensions receded. 

Political tensions in the US eased after the Congress on Thursday ratified Joe Biden's victory of the US presidential election, and the Democratic Party's control of the Senate and Representatives, after winning the two run-off seats for the Senate elections in Georgia.

Gold stocks at the SPDR ETF remained unchanged on Friday, with the total at the lowest level since December 31 of 1,182.11 MT.

Oil prices fell on Monday, and pulled back from an 11-month high on profit-taking and renewed concerns about demand in China, after the country reported the largest daily increase of Covid-19 infection in more than 5 months.

US crude fell 2.0% to $51.58, after opening at $52.61, and hit a high of $52.68, and Brent crude fell 2.2% to $55.02 a barrel, after opening at $56.26, and hit a high of $56.32.

US crude gained 3.4% and hit an 11-month high of $52.72 on Friday, and Brent crude futures rose 3.3%.

Oil prices gained around 9% during the past week, and posted the first weekly gain in three, and the largest gain since early October.

This largest weekly gain in four months came thanks to Saudi Arabia's pledge to cut its oil output during the next two months, and after US oversupply concerns faded thanks to a drop in the US crude inventories.

Saudi Energy Minister, Abdelaziz bin Salman said that his country would voluntarily cut its production by 1 million barrels per day in February and March to balance the market.

The total US commercial inventories fell to 485.3 million barrels during the week ending January 1, the lowest level since the week ending October 30, which is considered a positive sign of the US domestic demand.

The National Health Commission of China said on Monday reported the largest daily increase in new Covid-19 cases in more than 5 months, especially as new infections continued to rise in Hebei Province that borders the capital, Beijing.

In Shijiazhuang, the epicenter in Hebei, the authorities imposed a lockdown on the city and prevented people and vehicles from leaving to curb the spread of the virus.

Most European countries are now under the strictest lockdown since the first coronavirus wave , according to the Oxford Covid-19 Government Response Tracker, which tracks and compares worldwide travel bans and closures of schools and workplaces.

Asian stock indices opened the week mixed with China, Hong Kong, South Korea higher, while Australia and New Zealand lost ground, as Japan closes for a bank holiday. 

From Australia, the MI inflation index rose 0.5% in December, while retail sales rose 7.1%, compared to 7% in November. 

China's consumer prices rose 0.2% in December, compared to a 0.5% drop in November, while producer prices fell 0.4%. 

Japan's TOPEX rose 1% to 1,844, while Nikkei 225 climbed 1.74% to 27,969. 

China's CSI 300 rose 0.70% to 5,533, while Shanghai climbed 0.34% to 3,582. 

Hong Kong's Hang Seng rose 0.66%, while South Korea's KOSPI climbed 0.45% to 3,166. 

New Zealand's NZX 500 fell 1.61% to 13,340, while Australia's S&P/ASX 200 gave up 0.95% to 6,693. 

USD/JPU tilted higher in Asian trade for the fourth session away from March 10 lows, marking December 11 highs amid a lack of data from both Japan and the US and ahead of US Fed speeches. 

As of 06:54 GMT, USD/JPY rose 0.34% to 104.19, with a month high at 104.22, and a session-low at 103.74. 

Federal Reserve Bank of Atlanta President Raphael Bostic is due to speak about the 2021 economic outlook at an online event hosted by the Rotary Club of Atlanta.