The US dollar rose on Monday, extending its gains for the second straight day and hit a 4-week high, amid the market's risk-off sentiment due to concerns over the rising Covid-19 infections in most parts of the world, in addition to political tensions in Italy.

The dollar index rose more than 0.2% to the highest since December 21 at 90.95 points, after opening at 90.78, and hit a low of 90.71.

The index gained 0.5% on Friday, the second daily gain in 3 days, after the unveiling of a huge stimulus package in the US.

The greenback gained 0.7% last week, in its second straight weekly gain, and the largest weekly gain since late October.

The largest weekly gain in around 4 months came thanks to a jump by the US 10-year Treasury bonds yield above the 1% barrier for the first time since March 2010, and hit a 10-month high at 1.184%.

The US dollar shined as the best alternative investment, as the market's risk appetite dampened due to renewed concerns about the rising Covid-19 infections in most parts of the world, especially in China, the world's second largest economy.

China reported on Friday the largest daily increase in new Covid-19 cases in more than 10 months, especially after new infections in the northeastern Heilongjiang province tripled.

This spike is the equivalent to the number that led to imposing a full quarantine on more than 28 million people in Hubei province 8 months ago.

Most European countries are now under the strictest lockdown since the first coronavirus wave, especially after the UK identified the new Covid-19 strain.

As for Italy, political tensions are escalating as the fate of the current government is hinging on the results of Parliament's vote on Monday and Tuesday to continue in power.

Silver prices fell on Monday, to deepen losses for the second straight day and hit a 5-week low, due to weak safe-haven demand while the US dollar rose against its peers.

Silver prices fell 2.75% to the lowest since December 15 at $24.03 an ounce, after opening at $24.71 and hitting a low of $25.15.

Silver closed lower by 1% on Friday, and posted its second daily loss in 3 days as the prices of most dollar-denominated metals fell.

Silver prices lost 2.6% last week, the second straight weekly loss, after investors shifted to the US dollar.

The US dollar index rose nearly 0.3% against a basket of major currencies today, and hit its 4-week high of 90.95 points.

The dollar shined as the best alternative investment, after a spike of Covid-19 cases in Europe, due to tight lockdown measures to curb the spread of the new Covid-19 strain, in addition to political tensions in Italy.

European stocks fell on Monday, extending losses for the second straight day, and pulled back from an 11-month high on profit-taking, and the market's risk-off sentiment due to concerns over the rising Covid-19 infections in most parts of the world, in addition to political tensions in Italy.

The Stoxx Europe 600 index fell more than 0.3% as of 11:28 GMT, after it closed lower by 0.8% on Friday, after it hit the highest level since February 2020 at 412.46 points.

Stoxx Europe lost 0.7% during the past week, and posted its first weekly loss in 3 weeks, and the first weekly loss in 2021, due to profit-taking.

The pan European index opened lower today losses for the second straight day, and pulled back from an 11-month high, with most of the major European markets and sectors seeing red.

The utilities sector saw the largest losses in Europe, with a drop of more than 1.1%, as most of its share slumped.

The markets are still focusing on the latest updates about the new Covid-19 strain, after the infection rate increased in most parts of the world, especially in China, the epicenter of the deadly virus.

China reported on Friday the largest daily increase in new Covid-19 cases in more than 10 months, especially after new infections in the northeastern Heilongjiang province tripled.

As for Italy, political tensions are escalating as the fate of the current government is hinging on the results of Parliament's vote on Monday and Tuesday to continue in power.

S&P 500 futures fell 0.5%, after the index closed lower by 0.7% on Friday at Wall Street, in the second straight daily loss, due to profit-taking from its record high of 3,826.69 points.

Back to Europe, the Euro Stoxx 50 index fell 0.4%, France's CAC 40 fell 0.5%, the UK's FTSE 100 fell 0.4%, and Germany's DAX dropped 0.1%.

Gold prices fell on Monday, to deepen losses for the second straight day and hit a 7-week low, due to weak safe-haven demand while the US dollar rose against its peers.

Gold prices fell 1.4% to the lowest since December 1 at $1,803.32 an ounce, after opening at $1,828.16 and hitting a low of $1,840.85.

The yellow metal fell 1% on Friday, and posted its second daily loss in 3 days on rising US dollar.

Gold prices lost 1.2% last week, the second straight weekly loss, after investors shifted to the US dollar due to a jump by the US 10-year Treasury bonds yield to a 10-month high.

The US dollar index rose nearly 0.3% against a basket of major currencies today, and hit its 4-week high of 90.95 points.

The dollar shined as the best alternative investment, after a spike of Covid-19 cases in Europe, due to tight lockdown measures to curb the spread of the new Covid-19 strain, in addition to political tensions in Italy.