Gold prices jumped on Monday to a 6-week high, on strong safe-haven demand, after the United Kingdom identified a new coronavirus strain that spreads more quickly.

Gold prices rose 1.3% to the highest since November 9 at $1,906.74, after opening at $1,882.65 and hitting a low of $1,880.53.

The yellow metal closed lower by 0.2% on Friday, and posted first loss in 4 days on corrections and profit-taking.

Gold prices gained 2.25% during the past week, the third straight weekly gain thanks to a sharp drop in the US dollar.

Investors rushed to safe havens for shelter, which lifted gold prices to a 6-week high due to renewed concerns about the global economy, after the United Kingdom identified a new coronavirus strain that spreads more quickly.

The global markets are closely monitoring the situation, after a spike of the Covid-19 virus infections in the UK that forced the British government to impose a tighter lockdown in London, and other parts in the southeast.

Some reports suggest that the new Covid-19 strain could be up to 70% more transmissible than the original strain, and the World Health Organization said that the new strain is expected to be in other countries, including Denmark, the Netherlands and Australia.

Many countries in Europe have suspended flights coming from the United Kingdom, to prevent the new variant from spreading in their lands, including France, Germany, Italy, Ireland and the Netherlands, which was followed by a similar move from Canada, Saudi Arabia and other countries.

Gold stocks at the SPDR ETF remained unchanged on Friday, with the total at the lowest level since June 22 at 1,167.82 MT.

Oil prices lost more than 5% in European trade on Monday, as the US crude pulled back from its 10-month high, and Brent backed off its 9-month high, while on the verge of the first daily loss in 6 days on correction and profit-taking, in addition to renewed global demand concerns, after the United Kingdom identified a new coronavirus strain that spreads more quickly.

US crude fell 5.6% to $46.27, after opening at $49.03, and hit a session-high and the highest since February at $49.29, and Brent fell 5.8% to $49.22 a barrel, after opening at $52.24 , with a high of $52.28.

US crude gained 1.3% on Friday, its fifth straight daily gain, and Brent crude futures rose 1.5%, and hit a 10-month high of $52.46 a barrel

Oil prices gained 5% during the past week week, in the seventh straight weekly gain and the longest weekly gaining streak since March 2019.

These gains came based on the positive developments about the Covid-19 vaccines, while concerns about the US oversupply eased, and the sharp drop in the US dollar.

Oil prices fell sharply as the week kicks off, after the United Kingdom identified a new coronavirus strain that spreads more quickly, which renewed concerns about the tightening of global lockdowns, and their impact on the demand for fuel.

The British government announced a tighter lockdown in  London, and other parts in the southeast, after a spike of the Covid-19 virus infections.

Some reports suggest that the new Covid-19 strain could be up to 70% more transmissible than the original strain, and the World Health Organization said that the new strain is expected to be in other countries, including Denmark, the Netherlands and Australia.

France, Germany, Italy, Ireland and the Netherlands have suspended flights coming from the United Kingdom, to prevent the new variant from spreading in their lands, which was followed by a similar move from Canada, Saudi Arabia and other countries.

USD/JPY tilted higher in Asian trade off March 10 lows amid a lack of data from both Japan and the US while markets price in a new strain of Covid 19 that's more infectious, which started to appear in several countries. 

As of 07:08 GMT, USD/JPY rose 0.06% to 103.46, with an intraday high at 103.56. 

Congress' parties finally reached a deal on stimulus consisting of $900 billion, while reports showed the Tokyo Covid 19 daily infections passed 10,000 for first time. 

Otherwise, the FDA just authorized emergency use of the Moderna Covid 19 vaccine, the second vaccine to get authorization after Pfizer's. 

Euro fell in European trade away from 2-1/5 year highs against dollar on profit-taking while Sterling lost 2% to two-week lows against dollar on reports of a new highly infectious strain of Covid 19 in the UK. 

EUR/USD fell 0.4% to 1.2219, after closing down 0.1% on Friday, the first loss in five days on profit-taking away from 2-1/5 year highs at 1.2272. 

The common currency rose 1.2% last week against dollar on improving risk appetite, while the dollar index rose 0.6% today.

Investors are shunning risks today and buying up the greenback on haven demand after discovering a new Covid 19 strain in the UK.

The new strain led to complete shutdowns in London and other parts of the UK, with reports indicating the new strain is 70% more infectious than the previous one. 

Many countries banned travel from and to Britain to avoid the spread of the new strain.

Otherwise, GBP/USD fell 2.25% to 1.3227, the lowest since December 11, after closing down 0.4% on Friday. 

The pound rose 2.3% last week, the largest weekly profit since July before erasing all gains today as UK-EU negotiations stall and amid news of the new coronavirus strain.