The headline February Jobs Report handily missed expectations, but the important data showed a lurch higher in wage . CPI has continued to run hot and with oil up +30% since then, I believe the market is underpricing the risk of rate hikes. So is this rally in gold due to anomalous US fears? If so, we'd expect to see those fears priced into dollar, Fed Funds, TIPS, and Treasury markets. All of which appear to reflect expectations for global deflation.
That said, tomorrow we'll get another chance to test that hypothesis. I expect wage to continue to run hot. I'll be looking to get long gold around 1240 with a target of 1300 via April 1300 calls.