Gold prices fell on Monday, resuming losses after taking a breather on Friday, and hit a 6-week low as the US dollar rose against its peers.

Gold prices fell 0.7% to the lowest since August 12 at $1,742.02 an ounce, after opening at $1,754.08, and hit a high of $1,755.17.

Gold closed higher by 0.1% on Friday, after suffering the largest 2-day loss since August 6.

Gold prices lost 1.8% last week, the second straight weekly loss, as investors focused on the US dollar as the best investment.

The dollar index rose 0.2% on Monday, the third profit in a row, marking month highs at 93.40 against a basket of major rivals.

The gains come amid increased investor interest on the greenback following increased bets on policy tightening in the US before yearend. 

The Fed will convene tomorrow to decide on monetary policy and provide clarity over the future of monetary policy in the US, amid expectations to keep the interest rate unchanged and to start cutting its asset purchase program. 

Gold stocks at the SPDR ETF rose 1.74 metric tonnes yesterday, with the total at the highest since August 25 at 1001.66 metric tonnes.

Euro fell in European trade on Monday against dollar for third straight session, marking four-week lows on higher alternative demand on the greenback and amid concerns of divergent monetary policies between Europe and US.

EUR/USD fell 0.2% to 1.1706, the lowest since August 23, after closing Friday down 0.3% on yesterday, the second loss in a row on hopes for a stronger growth in the third quarter this year. 

The dollar index rose 0.2% on Monday, the third profit in a row, marking month highs at 93.40 against a basket of major rivals.

The gains come amid increased investor interest on the greenback following increased bets on policy tightening in the US before yearend. 

Euro lost 0.75% last week, the second weekly loss in a row on renewed concerns over divergent US-Europe policies.

The concerns intensified after the ECB asserted recently on carrying out its current stimulus policies unchanged until the end of next year's first quarter at least.

US stock indices closed lower on Friday, and posted weekly losses amid the uncertainty about the Fed's next move.

The US consumer price index rose less than expected, but the retail sales index rose by 0.7% in August, beating forecasts of a drop by 0.7%.

The Fed is awaiting more signs of the rising inflation rate and the economic recovery to start reducing size of its bond-buying program.

US President Joe Biden criticized the wealthy due to what he described as a massive increase in their wealth of up to $1.8 trillion, which he considers unfair.

To the oil market, WTI crude October futures fell fell 0.9% or 64 cents, and closed at $71.97 a barrel, but posted a weekly gain of 3.2%.

Brent November futures fell 0.4% or 33 cents, and closed at $75.34 a barrel, with a weekly gain of 3.3%.

As for stocks, Dow Jones fell 0.5% or 188 points, and closed at 34,584, and posted a weekly loss of 0.1%, with a day high of 35,779, and a low of 34,519.

S&P 500 fell 0.9% or 40 points to 4,433 and posted a weekly loss of 0.6%, after hitting a high of 4,471 and a low of 4,427 points.

Nasdaq fell 0.9% or 138 points to 15,044, and registered a 0.5% weekly loss, with a high of 15,166 and a low of 14,998.

Baker Hughes Co. reported today that the number of US oil rigs rose by 10 to 411 rigs this week.

The number of natural gas rigs fell by 1 to 100 rigs, with the total number of natural gas and oil rising by 9 to 511 rigs.