From the weekly Northern Trust economic report...


"Given the recent weakness in the US economy, the markets are now starting to price in another 25 basis cut in the funds rate in May or June. Unless there is a major reversal in energy prices, US consumer inflation is likely to be drifting still higher in the next several months, which would make the inflation-adjusted return on short-term money even more negative. It is getting more difficult to get an "honest" return on your short-term money in any major capital market. Unless conditions change radically in the near term, gold prices are likely to be retesting their early-February highs of $390."