The shift to expecting higher short rates started the first week of March when the US and Israel attacked Iran (blue ellipse). Being a net exporter of oil (~4 MBD) may have softened the decline, but the ~145 bps premium of US short rates over Canadian rates is a powerful force. GoldGold rallied ~$200 from last week’s sub-$4,000 lows to Wednesday’s highs, but closed only ~$30 higher, week over week. My short-term tradingI started this week short the S&P and long the Yen. The ArchiveReaders can access any of the weekly Trading Desk Notes from the past six years by clicking here.