Gold fell briefly below the 4,000 level on Wednesday but couldn’t extend the losses further as we started to see pullbacks in real yields and the US dollar. It looks like we have reached the peak in the hawkish repricing, and the next leg will need upside surprises in the US NFP and US CPI reports. Fed’s Williams yesterday reiterated that the current policy setting is well positioned and the US Core PCE came in line with expectations. All in all, there isn’t a strong reason to price in any more rate hikes at the moment. We’ve also been seeing a pullback in the rate hike bets as the total tightening expected by ... (full story)