While US data remains strong, the Fed can use the trends in core PCE to justify the start of rate cuts. The Fed wants to engineer a soft landing, which allows it to emphasize disinflation over growth.

A cutting cycle should eventually attract discretionary trader capital, which should support Gold towards new all-time highs.

CTA trend followers still hold substantial dry-powder to deploy, physical market buying activity has remained strong, and China is buying gold at a fast clip – all of which tilt the balance of risks in Gold prices to the upside, hot data notwithstanding.