The economic data to come out this morning is likely to favour a rate pause on June 29, and hence precious metals ought to be headed higher. But with so many doubters, there will be a wall of worry here until after the June 29 FOMC announcement.

By then the stocks will already have moved 10 pct or so (taking a guess here). And if, as and when the Fed pauses, we will also be looking to the skies to observe an array of sparkling moonshots in the junior gold and silver miners.

Then in early August, reality will set in that the Fed is likely to raise yet another time, and that will yet again shake the confidence of gold traders, and all equity traders for that matter.

Spot gold price at 6:47am at INO.com

Spot silver price at 6:48am at INO.com

One word of advice is that fund managers may be using this rally to exit positions in stocks like KRY ad others they are concerned about from a country risk perspective. That is going to become the focus of June, I think.