OVERNIGHT

Gold was up almost 2% overnight trading at $1236.40. Last night we wrote about whether the dove or the hawk would show up at Yellen's talk Tuesday and the price of gold should tell you something to answer that point.

Asian shares rallied overnight partly at least based on Yellen's dovish or cautious tone as she mentioned global dangers to growth and inflation. Translation: go slow on tightening, at least that's how the market read it with the Dow and S&P 500 closing at thier 2016 highs. Her dovish comments were just what the market needed to give it another, although modest, upward boost, a literal put option. Forget the fundamentals, investors seem to be saying, they're still addicted to the juice.

The Korean Kospi hit a high for the year while Japanese shares were the rare losers as the yen rallied against the dollar. Weaker dollar stronger gold. The Shanghai Composite Index was up nearly 2%. The MSCI index of Asian-Pacific shares outside Japan shrugged off a four-day losing streak rising 1.4%. In the currency markets, the Australian dollar along with the yen, as noted, moved higher,just above 76 cents, not far off it recent peak of $0.7681. The dollar not only fell against the yen, it also faded against the euro trading at $1.1300.

U.S. government bond prices rallied pushing the yield of 10-year Treasury note to a one month low at 1.814% while oil prices languished below $40 a barrel, a level that seems to be the magic resistance point for now.