Silver rallies to 3-week high on risk aversion

Silver prices soared on Monday, jumping to three-week high, to rally for the second straight day, on investors' risk-aversion and strong safe-haven demand, due to fears over the outbreak of the new Coronavirus in China.

Silver prices were higher by 0.7% at $18.35 (highest since Jan. 8), after opening at $18.23, and hitting a session-low of $18.13.

Silver gained 1.6% on Friday, its largest daily gain since Dec. 24, as most precious metals surged on strong safe-haven demand.

During the past week, silver prices gained 0.3%, the first weekly gain in three weeks, on investors' risk-aversion, due to concerns about the Chinese virus.

Most stock markets around the world continued to drop on Monday, as investors averted high-yield assets in favour of safe havens, amid the mounting fears about an outbreak of the new Coronavirus in China, and its negative impact on the Chinese economy.

The coronavirus has infected 2,682 cases in China, and its death toll rose to 81, according to Chinese news agencies.

The Chinese government declared a state of emergency in the country, extended the Lunar New Year holiday for additional three days until Feb. 2, and ordered companies in Shanghai to postpone work until Feb. 9 at least.