In last week's article, I noted that one of the requirements for another leg higher in gold would be for the USDJPY to break below 100 — and that has now happened. The next level to watch will be the 99.02 low tick from the Brexit shenanigans. If we hold 100 and then 99, it will encourage metals bulls, especially as they have now had six weeks since the most recent highs.

Open Interest is off some 15 percent from peak levels in GC futures, and ETF has had some significant redemption. Yet we have held the top end of the range for gold prices, so technicals are a bit refreshed. The one support that seems to be missing is North American physical supply-demand balance, which is still skewed heavily toward oversupply.

We would want to see that change before really getting excited for upside, but perhaps a breakout above the $1,375 highs will encourage coin and bar investors to dip their toes back in the water. Another indicator would be the Shanghai premium going higher, but $1-$2 isn't necessarily bearish either.

Vols and call skew have cooled significantly, so options bulls may see opportunity here, but again I think it's dependent on a follow-through rally for gold through the 1,374 level. Silver is once again back to the strong $20 level that seems almost magnetic now. Both metals have already had a terrific year (best in 30 depending on your metric), so further gains will be hard pressed, but this is not exactly a normal cycle.

What else is there for macro investors right now? This year's rally has been a futures and ETF story, so perhaps more of the same can be expected?

Yen and gold are probably the tightest of correlations around lately, so consider it a tailwind:

I'll write a longer-form note next week, but this seemed a significant enough development this morning to bear mentioning. We remain cautious for big sell-offs on changes in sentiment, but this is encouraging. John Moncrief and Trent Caffee are the currency gurus on their respective Europe and Asia shifts, so feel free to ping them if you want some real-time color. Best of luck.