Treasury Securities Still Have That Allure...

...when a debt crisis threatens. The recent Dubai rescheduling of its Dubai World debt has pushed stock futures down about 2%, and the price of Treasury securities and the U.S. dollar up. The fear that Dubai might reschedule [default on] its sovereign debt is helping push down everything except for T-securities and the greenback.

"Everything" includes gold. The price of gold went into a veritiable freefall early this morning, plunging more than $60/oz before the bottom kicked in. It can indeed be said that gold was overbought earlier this week.

But, subsequent to the plummet, gold's recovered to above $1160. The midnight to 3 AM ET drop - yes, it was that fast - proved to have a bit of panic to it. The gold-stocks link is still there, as Wall Street will find out shortly.