Over the three-day holiday weekend, President Biden and House Speaker McCarthy reached a deal to raise the debt limit which hit $31.4 trillion In January. The 99-page bill headed over to the House Rules Committee this morning, where the committee will vote to send it over for a full house vote expected on Wednesday.

The BLS (Bureau of Labor Statistics) released the latest data on inflation, the personal consumption expenditures price index (PCE price index) for April 2023 today. Inflation rose by 0.4% last month, an increase of 4.7% compared to a year ago.

Gold futures basis the most active June 2023 Comex contract traded briefly below the 100-day simple moving average at $1939.50. Gold futures traded to a low of $1939 just $0.50 below its 100-day moving average which technical traders use as a benchmark to determine the interim trend of a stock or commodity.

Market participants are witnessing extreme dollar strength and exceedingly high yields in short-term Treasury Bills as continued uncertainty and angst surrounding negotiations to raise or suspend the debt ceiling are still at a stalemate. The US dollar has climbed higher for the last three consecutive weeks after trading to a low at the beginning of May at 101.

Short-term T-bills maturing between June 6th through 15th are currently yielding 5.997%, an indication of the angst regarding whether a debt ceiling resolution can be reached on time before threatening a government default of its financial obligations.