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Metals Still in Negative Territory


The precious metals markets were slammed within the first hour of trading overnight, with gold prices down more than $80 and silver down more than $2.00. Although both saw very large rebounds over the next few hours, prices remain well into negative territory this morning. With chatter on stagflation and increased COVID case counts added to the mix, precious metals could stay on the defensive early this week.


Platinum and palladium ended last week on a downbeat note and have followed through to the downside early today. Palladium continues to hold the upper hand, as it spent a good portion of Friday in positive territory before turning to the downside at midsession. On the other hand, platinum remains on the defensive, as it is on track for a fifth negative session in a row as it has fallen below the key $1,000 level for the first time since November.


Copper has followed last week’s volatile finish with a move to a new 2 1/2-week low overnight, as concerns over the rise in COVID cases and a stronger dollar weigh on the market. The December contract finished last week with a loss of 13.45 cents, breaking a two-week winning streak. Fortunately for the bull camp, a Chilean strike threat showed up last Friday with enough credibility to offset concerns of a significant downshift in Chinese demand.

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