Last week, I blew off the gold rally because it was not being confirmed by dollar weakness, rising interest rates (indicative of inflation jitters) or rising prices of other key commodities like oil…

What a difference a weekend makes!. The buck has fallen to fresh lows for the year; oil is back above $70 and US 10-year note yields are 16 bp firmer . The combination of reserve diversification and reflation (despite the G20 backing off the push for exit strategies, suggesting global rates will stay lower, longer) are the main drivers this week. We’ll see of it can be sustained.

As a closet dollar bull, I’m hanging my hat on support at 77.00 in the DXY holding…A thin reed, to be sure.