These days Gold is the last thing on pundits’ wish list. Many have started claiming that Gold does not fit the modern day requirement of a safe haven asset. Major US Gold Miners are breaking higher, suggesting Gold's recovery towards $1240-$1250.

We agree that the EUR/USD pair is set to drop to parity levels, however, a notable correction is more likely than not in the short-run.

Fiscal reflation coupled with rising US rates, amidst the rally in iron ore and other commodities could bode well for the Aussie stocks. Furthermore, AUD weakness could add to the bullish tone around equities as seen in the past.

The drop in Gold post Trump’s victory is a part of the ‘hope trade’ – hope that the Trump would embark on a massive fiscal spending effort, but the markets are currently ignoring the rising inflation expectations and inflationary pressures ahead.