Up the escalator, down the elevator
Precious metals are taking a beating today. Gold is down $75 to $1954; that's 3.3%. Silver's decline in percentage terms is nearly double.
The last leg of the rally is being unwound as the weak, momentum players are shaken out. Given the speculative enthusiasm over the past few months, this has the potential to be an ugly drop, even moreso than it is now. I highlighted the downside risks on Friday.
In the macro picture, the lack of US stimulus and falling cases appear to be drawing a line under US 10-year yields. They challenged 0.50% last week but have backed off to 0.6250%. It's obviously early but that could be a major bottom.
