We are surprised the gold market is tracking in positive ground this morning considering the sharp upside breakout extension in the dollar, slightly higher US treasury yields, and perhaps most importantly in the face of comments from the Fed's Waller indicating he needed at least two more months of favorable inflation data to be comfortable cutting rates.
However, Waller's comments do not preclude a June rate cut considering the two-month qualifying statement, with [Friday's] PCE readings for February.
This morning the CME Fed watch tool pegs the odds of a June 12th rate cut at only 55.4% compared to 64% yesterday...[MORE]
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