Rate hike bets, strong USD lift dollar; gold rebounds, oil capped.

On Monday, at the call of US President Trump, Iran and Israel agreed to stop mutual attacks. The US dollar index fell slightly, but still hovered around its highest level in nearly two months, ultimately closing down 0.07% at 100.00; The benchmark 10-year Treasury yield closed at 4.568%, while the 2-year Treasury yield sensitive to the Federal Reserve policy rate closed at 4.166%. On Monday (June 8th), the gold price fell to its lowest point in nearly two and a half months, around $4268, but then miraculously regained most of the lost ground. On the surface, this is a drama directed by the geopolitical situation in the Middle East and US economic data, but deep down, it reveals the most genuine fears and expectations in the hearts of current gold traders. On one side are the sudden ceasefire signals released by Israel and Iran, and on the other side are the far exceeding US employment reports. Both long and short sides are repeatedly tug of war at the $4300 per ounce mark, and neither side can completely gain the upper hand. WTI crude oil rose more than 4% at one point after opening high, but quickly plunged in the pre session of the US market, wiping out most of the gains of the day, and finally closed up 0.7% at $92.37 per barrel; Brent crude oil ultimately closed up 1.52% at $93.42 per barrel.