Gold markets seem hesitant after Monday’s rally above the $2000 level and with a large disconnect between Federal Reserve speakers and money markets, further guidance is needed; possibly in the form of economic data. Speaking of implied Fed interest rate probabilities, the table below shows market expectations of close to 100bps of rate cuts by year end while some Fed officials are calling for further rate hikes above the 5% rate after which these levels should be maintained to keep downward pressure on inflation.
