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Reflation Still The Theme as Copper Hits New Highs

COMMODITIES

Despite stalling in the middle of the week, copper futures resumed their incline Friday, hitting new multi-year highs in the process. Reflation clearly remains the theme, with firm equities, energy and industrial metals prices holding into the Friday close.

The strength in commodities comes despite a soft November US jobs report, with signs of an imminent US fiscal deal and a buoyant oil futures curve following the OPEC+ agreement the primary support.

Gold traded slightly weaker despite a less-than-rosy outlook for the USD. Losses were contained, however, with gold edging lower by only $5/oz and remaining well clear of 200-dma support at $1804.50.

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