Here we are, on an otherwise quiet Friday. There is very little sense of urgency in the financial markets. European sovereign debt fears are simmering down. Spreads between Spanish and German bonds have contracted sharply ahead of the weekend, falling about 25 bp today to below 200 bp ahead of the weekend. European stock markets are mixed, the dollar is steady…really only one market stands out…Gold.
Gold is the ultimate safe haven but one wonders what investors are hiding from today as they bid the yellow metal into the stratosphere. The cash market trades around the $1258 level, a new record. Someone feels a sense of urgency today but I’m not exactly sure why. Bears watching, as it suggests there is another sovereign shoe to drop…
