Silver prices fell on Monday, deepening losses for the second straight day, and pulled back from a 2-week high on profit-taking, despite China's decision to cut interest rates.

Silver prices fell 0.4% to $22.27, after opening at $22.36, and hit a day high at $22.44.

Silver closed lower by 0.5% on Friday, due to profit-taking from a 2-week high of $22.67 an ounce.

Silver prices gained 0.8% last week, the first weekly gain in 5 weeks, due to strong demand as a safe haven.

Most precious metals prices fell on Monday weighed down growing odds of a US interest rate hike next March, especially after recent Federal Reserve officials' statements.

The People’s Bank of China unexpectedly cut interest rates on Monday by 5 basis points to 3.8%, to support the economy that is facing severe conditions, which may lead to the worst growth rate in a long time.

Stimulating the Chinese economy lifts demand for metals and commodities, as China is the world's largest consumer of metals.

European stocks fell on Monday, deepening losses for the second straight session, amid fears over the rapid spread of the Omicron variant in most parts of the world, and warnings from the World Health Organization.

The Stoxx Europe 600 index fell 1.7% as of 11:15 GMT, after it closed lower by 0.5% and hit the lowest level since December 3rd at 461.79 points.

The pan European index lost 0.35% last week, the fourth weekly loss in 5 weeks, due to risk aversion.

The travel sector saw the largest loss in Europe today, with a drop of 2.5%, due to growing Omicron Covid fears.

The World Health Organization said on Saturday that Omicron cases are doubling in 1.5 to 3 days in areas with community transmission, adding that there are still limited data on the clinical severity of Omicron.

The Netherlands went into lockdown on Sunday, with more lockdown restrictions looming before the Christmas and New Year holidays in many European countries.

S&P 500 futures fell 1.5% today ahead of Wall Street's opening, after the index closed lower by 1% on Friday.

Back to Europe, the Euro Stoxx 50 index fell 1.7%, France's CAC 40 fell 1.5%, Germany's DAX index fell 1.9%, and the UK's FTSE 100 fell more than 1.4%.

Gold prices fell on Monday, deepening losses for the second straight day, and pulled back from a 3-week high on profit-taking, weighed down growing odds of a US interest rate hike next March.

Gold prices fell 0.2% to $1,796.45, after opening at $1,799.09, and hit a day high at $1,804.09.

Gold closed lower by 0.1% on Friday, due to profit-taking from a 3-week high of $1,814.27 hit on Thursday.

Gold prices gained 0.8% last week, the first weekly gain in 5 weeks, due to strong demand as a safe haven.

Member of the Board of Governors of the Federal Reserve Christopher Waller said on Friday that the Fed is likely to raise interest rates soon after it ends the bond-buying program.

Gold stocks at the SPDR ETF rose 0.87 metric tonnes on Friday, with the total at 978.57 metric tonnes.

Oil prices fell over 5% on Monday, deepening losses for the second straight day and hit a 2-week low due to fears over a global demand for fuel and increasing market surplus, due to the rapid spread of the Omicron variant in most parts of the world, and warnings from the World Health Organization.

US crude fell 5.2% to the lowest since December 6 at $66.67 a barrel, after opening at $70.35, and hit a high at $70.35, and Brent crude fell 4.6% to the lowest since December 3 at $69.64 a barrel, after opening at $72.76, and hit a high at $72.80.

The US crude lost 2.25% on Friday, and Brent fell 2.25%, due to the increasing Omicron cases.

Oil prices lost around 2.5% last week, the seventh straight weekly loss, due to renewed concerns about the market balance.

The spike in Omicron-Covid cases in Europe and the US raised concerns about the return of lockdown restrictions which would impact the global fuel demand.

The British Health Minister refused to rule out re-imposing further restrictions before the Christmas holidays, and British Prime Minister Boris Johnson is reportedly considering urging the public to limit household mixing at Christmas.

The Netherlands went into lockdown on Sunday, with more lockdown restrictions looming before the Christmas and New Year holidays in many European countries.

The World Health Organization said on Saturday that Omicron cases are doubling in 1.5 to 3 days in areas with community transmission, adding that there are still limited data on the clinical severity of Omicron.

Baker Hughes revealed on Friday that the US drilling and exploration rigs rose by 4 rigs to a total of 475, the highest level since the week ending April 10, 2020.

The increase in the US drilling activity boosted the US production by more than 47% since mid-2016 to a total of 13.1 million barrels per day in March 2020, and held recently around 11.7 million bpd due to the coronavirus pandemic, marking the US place as the world's largest oil producer.