Gold prices fell on Monday, deepening losses for the second straight day, and fell below the $1800 barrier, and pulled back from a 5-week high on profit-taking, while the US dollar rose against its peers.

Gold prices fell 0.6% to $1,794.66, after opening at $1,805.59, and hit a day high at $1,807.62.

Gold closed lower by 0.3% yesterday, due to profit-taking from a 5-week high of $1,820.23.

The dollar index rose 0.25% today, extending gains for the second day in a row, which lowers demand for gold and dollar-denominated metal prices.

This US dollar is rebounding as odds receded for a full nationwide lockdown to limit the spread of the Omicron variant in the US, especially after several scientific studies showed lower health risks from the new variant compared to other variants such as Delta.

Investors are now focusing on prospects for the tightening of US monetary policy, and the chances for the Federal Reserve to raise interest rates starting from its March 2022 meeting.

Gold stocks at the SPDR ETF rose 2.03 metric tonnes yesterday, with the total at 975.66 metric tonnes.

Sterling fell in European trade against dollar for second session away from five-week highs on profit-taking, as the dollar rebounds as Omicron concerns fade.

GBP/USD fell 0.2% to 1.3411, with an intraday high at 1.3437, after closing down 0.1% yesterday, away from five-week highs at 1.3462.

Sterling's spike came after the UK government decided not to impose new restrictions in the holidays. 

The dollar index rose 0.25% on Wednesday, the second profit in a row against a basket of major rivals.

The gains came as the US administration is unlikely to impose new restrictions due to Omicron, as studies noted it's a less dangerous variant than Delta. 

As Omicron concerns fade, investors are back on the Fed's rate hike prospects starting March 2022. 

Gold prices fell slightly on Tuesday, while the dollar rose against most major currencies, amid focus on the pandemic updates.

Trading is calm during this week as global markets are now preparing for the end of 2021.

A study on cases infected with the omicron variant suggests lower risk of hospitalization and death compared to the delta variant.

Many countries have tightened their precautionary measures amid the holidays season, but none re-imposed full lockdown.

The dollar index rose against a basket of major currencies by 0.1% to 96.1 points as of 21:22 GMT, after hitting a high of 96.2 points and a low of 96.00 points.

Gold spot prices fell 0.1% to $1,806.2 an ounce, as of 21:23 GMT.

Oil prices rose on Monday, despite the dollar's rise against most major currencies, amid improved risk-appetite in assets such as commodities, currencies and stocks, as concerns about the Omicron eased.

A study on cases infected with the omicron variant suggests lower risk of hospitalization and death compared to the delta variant.

Many countries have tightened their precautionary measures amid the holidays season, but none re-imposed full lockdown.

The American Petroleum Institute will release its preliminary report on the US crude inventories later today, and the US Energy Information Administration will release the official data on Wednesday.

The dollar index rose against a basket of major currencies by 0.1% to 96.1 points as of 18:20 GMT, after hitting a high of 96.2 points and a low of 96.00 points.

WTI January futures rose 0.4% to $75.8 a barrel, as of 18:11 GMT.

Brent February futures rose 0.4% to $78.9 a barrel.