Europe debt fears spark dollar, gold chatter on StockTwits

July 6, 2011: 12:14 PM ET
currencies

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NEW YORK (CNNMoney) -- The U.S. dollar index and gold miners are among the more popular themes of the day on StockTwits.

The dollar rose for a second day in a row following renewed European sovereign debt fears, which sent Portugal, Italy and Spain's yields higher overnight. The yield on Portugal's 2 Year bonds reached 17%.

Late Tuesday, rating agency Moody's downgraded Portugal's debt to junk status, which apparently has shaken investors' confidence in equities and boosted appetite for safer assets.

Gold, silver and precious metal miners are also getting investors' attention as a result. The SPDR Gold Trust ETF (GLD) is up 2% since last Friday, and the iShares Silver Trust ETF (SLV) is up more than 3% for the same period. Gold prices rose more than 1% Wednesday to top $1,530 an ounce, after gaining more than 2% Tuesday.

Not surprisingly, the financial sector continues to underperform on renewed European sovereign debt problems. Bank of America (BAC, Fortune 500) is trading near a 52-week low as investors object to its recent $8.5 billion mortgage settlement.

BofA stock slips 3% on settlement deal hurdle

The StockTwits community has been all over these stories Wednesday:

skayfe: as expected, Portugal downgrade weighing on European markets, hitting U.S. futures overnight, dollar ripping $SPY $UUP

mcarn_sc: Strange to see both dollar strength and gold moving higher. Guess nobody wants Euros. $DX_F $GC_F$6E_F

tradingpoints: When the US Dollar can rally on good US fundamentals, then the economy will truly be on the mend. $USDX - or is that too old fashioned?

TheTSXpert: $UUP is holding up, despite float on $SPY. A strong USD means any amount of volume sinks the market. Not saying go short, just watch longs.

Johnny905: $GDX breaking above 50sma. Looking good.

NovaGold: Gold market has been volatile and $NGtends to have bigger swings bc of leverage to gold price.

Convertbond: Walnut Place Group of investors filed a petition to intervene in Bank of America $BAC / Countrywide settlement, "not wide enough" #mortgage

daytrend: $XLF a close below the 7/1 low is anything but bullish.  To top of page

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