The official probability of a December rate hike continues to diminish over the last several days

The markets had the rate hike at about a 70% probability; now we're down to about 60%

Personally, I think the odds are closer to zero, and over time, as we get closer and closer to that December meeting, the odds will steadily move down

Just like the Atlanta Fed keeps moving down its estimates for Q3 GDP; most recently down to 1.9%

I expect the Atlanta Fed to move lower again this week on more weak economic data

As the potential for a rate hike diminishes, gold's appeal improving, gold prices now back above $1260 today

We've had a couple of back to back strong days in the gold sector

Maybe the catalyst for the recent correction in the price of gold was the renewed expectation of a November and now December rate hike

As those expectations are realistically dialed back, you'll see more money moving into the metals

The dollar, though, continues to trade firm

It's not moving higher, but it's not really surrendering much of its gains

Maybe some of this has to do with weakness particularly in the pound

Why is the pound so weak?

The Bank of England was very forthright, they wasted no time in warning voters not to vote for Brexit as it would be a disaster for the British economy

Well, sure enough, the people voted for Brexit, and so now, it is a self-fulfilling prophecy

The central bankers in Britain had convinced themselves that the economy would require stimulus, and therefore announced an increase in their QE program