Gold prices fell on Monday, resuming losses and hit a 2-week low, weighed down by the rising US dollar and weak safe-haven demand.

Gold prices fell 0.5% to $1,851.51 an ounce, after opening at $1,891.26, and a high at $1,891.84.

Gold gained 1.1% on Friday, within recovery attempts from a 2-week low at $1,855.48 thanks to disappointing data in the US.

Last week, gold lost 0.7%, and posted its first weekly loss in 5 weeks, as investors focused the US dollar.

The dollar index rose 0.1% today, which weighs down on demand for gold and other dollar denominated metals.

Several sources said that the Democratic Party will start Wednesday preparing the infrastructure bill for a vote in the US House of Representatives, with or without the Republican Party's support.

US Treasury Secretary Janet Yellen said President Joe Biden's $4 trillion spending plan would be good for the US, even if it contributes to rising inflation and results in higher interest rates.

Gold stocks at the SPDR ETF rose 1.41 metric tonnes on Friday, with the total at the highest level since March 25 at 1,043.16 metric tonnes.

Oil fell on Monday, and pulled back from several years high on profit-taking, while on track for the first daily loss in 6 days, as traders await the next round of talks to revive the 2015 Iran nuclear deal later this week.

US crude fell over 0.6% to $68.95, after opening at $69.38, and hit a day high and the highest since October 2018 at $69.97, and Brent crude fell 0.9% to $71.12, after opening at $71.74, and hit a day high and the highest since May 2019 at $72.74.

US crude gained 0.7% on Friday, and Brent crude rose 0.3%, their fifth straight daily gain, based on concerns over supply shortages in the US.

Oil prices gained 4% last week, the second weekly gain, thanks to improved US demand.

The Iranian government and world powers have entered a fifth round of intensive talks in Vienna aimed at paving the way for Tehran to return to full compliance with the 2015 agreement in exchange for lifting US economic sanctions on Iranian oil exports.

The European Union envoy coordinating the talks stated that he believed a deal would be concluded at the new round this week.

This comes after the former US President Donald Trump withdrew from the agreement in 2018 and re-imposed economic sanctions on Tehran.

Energy experts projected that Iran might add between 500,000 to 1.5 million barrels per day of oil once the US sanctions are lifted.

Euro fell in European trade against dollar and other major rivals, as risk aversion spreads in the market while investors await more data to prove improvement in the US labor market, which might accelerate policy tightening before 2023. 

EUR/USD fell over 0.1% to 1.2144, after closing up 0.3% on Friday, the first profit in four days away from three-week lows at 1.2103. 

Euro lost 0.2% last week against the greenback, the first weekly loss in three weeks following upbeat labor sector data from the US. 

The dollar index rose 0.1% on Monday against a basket of major and minor rivals, resuming the gains after a hiatus on Friday.

Investors are shunning risks and buying up dollar and other safe havens and awaiting more labor and GDP data from the US to monitor progress since the pandemic. 

US inflation data on Thursday will be an important focus to gauge inflationary pressures as the economy rebounds from the coronavirus pandemic. 

Oil prices rose on Friday, as the US dollar fell against most of its peers, and following the release of the US crude inventories data, while on the cusp of weekly gains.

The Energy Information Administration reported yesterday that the US crude inventories fell 5.1 million barrels to 479.3 million barrels during the past week, while analysts forecasts a drop by 3.3 million barrels.

The dollar index fell against a basket of major currencies by 0.4% to 90.1 points as of 16:56 GMT, after hitting a high of 90.6 points and a low of 90.1 points.

As of 16:56 GMT, WTI crude July futures rose 0.9% to $69.4 a barrel, after hitting a high of $69.7 and a low of $68.3.

Brent August futures rose 0.6% to $71.7 a barrel, after hitting a high of $72.1 and a low of $70.7.