Oil prices fell on Friday, deepening losses for the second day and gave up a 6-week high on profit-taking, as fears over production delay in the Gulf of Mexico region eased.

US crude fell 0.7% to $72.03 barrel, after opening at $72.53, and hit a high at $72.69, and Brent crude fell more than 0.6% to $75.16 a barrel, after opening at $75.62, and hit a high at $75.75.

The US crude lost 0.1% yesterday, the first daily loss in 5 days, on profit-taking from a 6-week high at $73.11, and Brent fell less than 0.1%, after hitting the highest since July 29 at $76.10.

After 2 weeks since Hurricane Ida and the Tropical Storm Nicholas hit the Gulf of Mexico this week, US production is recovering near its normal levels.

Production rose by 25% during the last few days, with the region’s total production rising to 75%, with 0.25% of production suspended but expected to resume after the weekend.

Gulf of Mexico encompasses 17% of the US total production, which was 11.5 million bpd before Hurricane Ida, and is currently around 11.1 million barrels per day.

Gold prices rose on Friday, within recovery from a 5-week low, after posting yesterday the largest daily loss in 6 weeks, but remain on track for the second straight weekly loss, after strong US economic data boosted the chances of tightening the US monetary policy.

Gold prices rose more than 0.7% to $1,766.86 an ounce, after opening at $1,754.02, and hit a high at $1,752.52.

Gold closed lower by 2.25% yesterday, and hit its 5-week low of $1,745.34 an ounce, after strong US retail sales data.

Gold prices have lost 1.2% so far this week, to head for the second straight weekly loss, as demand shifted for the US dollar as the best investment.

In the US, retail sales rose 0.7% in August, beating estimates of a 0.7% decline, while industrial activities improved in Philadelphian during September.

A survey by the US Federal Reserve also showed that Philadelphia's industrial production increased in September thanks to easing lockdown restrictions.

The data bolstered the case for a reduction in US bonds purchases before the year's end in a step that aims at raising US interest rates. 

Gold stocks at the SPDR ETF rose 1.46 metric tonnes yesterday, with the total at 999.92 metric tonnes.

Euro rose in European trade away from three-week lows against dollar, while on track for the second weekly loss in a row on renewed concerns over divergent monetary policies between Europe and the US.

EUR/USD rose 0.2% to 1.1785, with an intraday low at 1.1758, after closing down 0.45% yesterday, the fourth loss in five days, marking three-week lows at 1.1750 following strong US retail sales.

Euro is still down 0.25% this week on track for the second weekly loss in a row against dollar. 

In the US, retail sales rose 0.7% in August, beating estimates of a 0.7% decline, while industrial activities improved in Philadelphian during September.

The data bolstered the case for a reduction in US bonds purchases before the year's end in a step that aims at raising US interest rates. 

On the other hand, the European Central Bank asserted last week its commitment to maintain an ultra easy policy until the end of next year's first quarter at least, in turn triggering concerns of divergent US-European monetary policies. 

Silver prices slumped on Thursday, as the US dollar rose against most currencies, after the release of upbeat US economic data.

The US retail sales index rose 0.7% in August, beating forecasts of a drop by 0.7%.

The core retail sales reading (excluding food and fuel prices) rose 1.8%, beating forecasts of a drop by 0.1%.

The US Department of Labor revealed that the number of initial unemployment claims was at 332K last week from 325K, lower than forecasts of 332K.

The dollar index rose against a basket of major currencies by 0.4% to 92.9 points as of 19:39 GMT, after hitting a high of 92.9 points and a low of 92.4 points.

As of 19:40 GMT, silver spot prices fell 3.7% to $22.9 an ounce.