A comment from Friday after the blockbuster US nonfarm payroll headline:
On gold, this via TD on Friday. Says that while the prospect for a 50bp Fed rate cut at the end of the month is unlikely 25bps is still a positive for gold:
- I don't expect that gold is going to completely reverse its rally from the last few weeks
- The market is on some kind of a sugar high from the anticipation of imminent Fed cuts, so while we'll probably price out of the 50 basis-point-cut scenario, I think that the 25 basis-point cut is very much entrenched in markets at this point
Love the sugar high reference :-D
