Gold prices fell on Monday, and hit a 1-week low while on track for the second daily loss in 3 days, weighed down by growing odds that the Fed will start tightening the US policy soon, which is reflected in full pricing of a US interest rate hike in 2022.

Gold prices fell 0.6% to the lowest since June 21 at $1,770.64 an ounce, after opening at $1,781.11, and a high at $1,785.72.

Gold gained 0.35% on Friday, after it lost 0.2% the previous day  due to rising US dollar.

Last week, gold lost 0.9%, and posted its first weekly gain in a month, within recovery from a 2-month low at $1,760.80.

Despite the less than expected US consumer spending data in May, investors' bets that the Federal Reserve will start tightening monetary policy soon have not changed.

The market's bets of raising US interest rates by a quarter of a percentage point in December 2022 rose to 100%, which weighs down on gold prices.

Gold stocks at the SPDR ETF remained unchanged on Friday, with the total at the lowest level since June 17 at 1,042.87 metric tonnes.

Oil prices rose on Monday, extending gains for the seventh straight day, as hit a 3-year high, thanks to a strong global demand outlook during the second half of 2021 and growing odds for a market supply deficit unless OPEC-Plus increased output.

US crude rose 0.6% to the highest since October 2018 at $74.42, from the opening level at $73.97, and hit a low at $73.83, and Brent crude rose 0.6% to the highest since October 2018 at $76.56 a barrel, after opening at $76.08, and hit a low at $75.92.

The US crude gained 0.9% on Friday, and Brent crude rose 0.8%, in the sixth straight daily gain.

Oil prices rose 3.75% last week, the fifth straight weekly gain, thanks to growing indicators on the demand recovery in Europe, the US and China.

Thanks to progress in Covid-19 vaccination in Europe, the US and China, most major economies started to ease their lockdown restrictions, especially travel restrictions, which portends increased fuel consumption.

The International Energy Agency revealed in its monthly report on Friday that OPEC Plus needs to open the taps to keep the world oil markets adequately supplied and to meet the rising demand.

Goldman Sachs projected last week that Brent will rise to $80 per barrel this summer as vaccination campaigns spur the global economy.

Euro rose in European trade against dollar for third straight session after Fed officials managed to calm international markets last week about potential acceleration of US policy tightening, noting that US inflation is currently transient only. 

EUR/USD Rose 0.1% to 1.1944, after closing up 0.1% on Friday, the second profit in a row, marking week highs at 1.1975. 

The euro was up 0.6% against dollar last week, the first weekly profit in a month away from two-month lows at 1.1847. 

The dollar index fell 0.1% on Monday against a basket of major rivals as haven demand on the greenback declines. 

Fed chair Jerome Powell calmed worries that the Fed might tighten monetary policy sooner than expected, asserting that current increasing inflation levels in the US are transient. 

Powell expected economic recovery to take more time in the US before scaling down monetary support. 

Most of the US stock indices rose on Friday, as S&P 500 posted a record closing, while Nasdaq pared its early gains.

The US Personal Consumption Expenditures (which the US Federal Reserve relies on to measure inflation) rose in May to a nearly 3-decade high at 3.4%.

The markets absorbed Fed Chief Jerome Powell's hints on Tuesday that the Fed will adopt a patient approach before raising interest rates.

To the oil market, WTI crude August futures rose 1% or 75 cents and closed the highest level since October 2018 at $74.05 a barrel, and posted a weekly gain of 3.9%, after hitting a high of $74.1 and a low of $72.8.

Brent August futures rose 0.8% or 62 cents, and closed at $76.18 a barrel, and posted a weekly gain of 3.6%, after hitting a high of $76.1 and a low of $74.9.

As for stocks, Dow Jones rose 0.7% or 237 points, and closed at 34,433, and posted a weekly gain of 3.4%, with a day high of 34,501, and a low of 34,314.

S&P 500 rose 0.3% or 14 points to 4,280, and posted weekly gains of 2.4%, after hitting a high of 4,286 and a low of 4,271.

Nasdaq fell 0.1% or 9 points to 14,360, and registered a 2.7% weekly gain, with a high of 14,409 and a low of 14,337.