Oil prices plunged more than 3.5% in European trade on Monday, to deepen losses for the third straight day, on escalating fears over the coronavirus spread outside China, with increasing infections in Italy, South Korea and Iran.

US crude lost 3.5% to $51.42 a barrel, after opening at $53.31, and Brent crude fell by 3.7% to $56.30, after opening at $58.45.

The US crude lost 0.7% on Friday, and Brent crude futures fell 1%, their second daily loss due to lingering fears over the coronavirus global outbreak.

Oil prices gained around 2% during the past week, to post the second straight weekly gain, after signs of a slowdown in coronavirus infections in China, US sanctions on Venezuela, and Libyan oil output drop.

The rapid coronavirus spread outside China escalated fears over weaker oil demand in a market that is already oversupplied, especially by the US.

South Korea today announced the highest alert state of infectious diseases, after the virus infected more than 700 cases and its death toll rose to 7 victims.

The Italian health authorities also revealed today 152 confirmed cases of coronavirus, after the virus claimed 4 victims.

Leading to Iran revealing 43 were infected and the death toll rose to 8 victims, pointing that most of cases occurred in the holy Shiite city, Qom.

The International Energy Agency (IEA) last week lowered its forecasts for global oil demand by 435,000 barrels per day during the first quarter of 2020 due to the coronavirus outbreak, in the first quarterly drop since the global financial crisis in 2009.

Baker Hughes for oil services reported on Friday that the US drilling rigs rose by one, to continue rising for the third week.

The total shale oil drilling rigs rose to 679, at the highest level since the week ending in December 27.

This increase in drilling led the US production to rise by more than 47% since mid-2016 and jump to its all-time high of 13.0 million barrels per day.

European stocks slumped on Monday, to deepen losses for the third straight session and dive to three-week low, amid a massive sell-off due to escalating fears over the coronavirus spread in Italy.

The Dow Jones Stoxx Europe 600 index fell 3.5% as of 11:25 GMT, and the index ended the Friday session down by 0.5%, in the second daily loss in a row, with sales continuing to take profits, after recording a new record level at 433.90 points in The session before the previous.

The Stoxx Europe 600 index was lower by 3.5% at 11:25 GMT, after it closed lower by 0.5% on Friday, posting its second straight daily loss on profit taking from its all-time high of 433.90 points.

The European pan index shed 0.6% during the past week, its first weekly loss in three weeks, on risk-aversion due to increasing coronavirus infections outside China.

Stoxx Europe 600 opened today's session lower, to deepen it losses for the third straight day, hitting a 3-week low, with most of the major European exchanges and sectors falling today.

The travel and leisure sector saw the largest losses in Europe today, dropping more than 5.5%, on fears over the travel restrictions in Europe, and dim forecasts for a drop in major companies' profits.

Consequently, Italy's FTSE Index plunged more than 4%, as fears mounted around Europe's third largest economy, after the coronavirus rapid spread in the north of the country.

The Italian health authorities revealed today 152 confirmed cases of coronavirus, after the virus claimed 4 victims.

This led the Italian government to put about 12 northern cities under quarantine, with Milan and Venice at the center quarantined zone, which account for about 30% of the Italian GDP.

S&P 500 futures fell 2.5% today, after the index closed lower by 1.05% on Friday at Wall Street, and posted its second straight daily loss on profit-taking from its all time high of 3,393.52 points.

Back to Europe, the Euro Stoxx 50 index lost 3.6%, France's CAC 40 fell by 3.7%, the German DAX shed 3.6%, and the UK's FTSE 100 fell by 3.5%.

Gold prices rose on Monday, to extend gains for fifth straight day and jump to a 7-year top high, on the cusp of breaching the $1,700 threshold on strong safe-haven demand due to escalating fears over the global economic impact of the coronavirus spread in China and other countries.

Gold prices rose 2.2% to $1,689.33 an ounce (highest since January 2013), after opening at $1,653.58, and hitting an intraday low of $1,651.82.

The yellow metal gained 1.5% on Friday, to post its fourth straight daily gain and the largest since January 3, on continued safe-haven demand due to escalating fears over the coronavirus spread outside China.

Gold prices gained 3.75% during the past week, to post the second weekly gain in a row, and the largest weekly gain since August.

Most global stock markets opened sharply lower, on investors' risk aversion, on growing fears of the coronavirus rapid spread outside China.

Italy and Iran revealed deaths of the virus, and South Korea announced the highest alert state of infectious diseases, after the virus infected more than 700 cases and its death toll rose to 7 victims.

The World Health Organization stressed concern about the coronavirus rapid spread outside China, which is reflected in its impact on the major global markets.

Gold stocks at the SPDR ETF remained unchanged on Friday, at a total of 933.94 metric tonnes, the highest level since Nov. 11, 2016.

Euro declined on Monday against dollar, resuming losses as coronavirus cases surge in Italy, potentially impacting the economy of the euro zone's third largest economy. 

EUR/USD shed 0.4% to 1.0805, with an intraday high at 1.0842. 

EUR/USD rose 0.6% on Friday, the largest profit since January 31 away from three-year lows at 1.0778. 

The gains were bolstered by strong manufacturing data for February for Germany and the whole zone, propelling the euro to a 0.2% profit last week.

Italian stocks tumbled on Monday after authorities announced nearly 160 cases of coronavirus and 4 deaths related to the epidemic. 

The government put 12 northern cities under quarantine, representing nearly 30% of Italian GDP. 

Later today, an index tracking business climate in Germany is expected at 95.0 in February, down from 95.9 in January.