And They're Off: Gold Spikes, S&P Down 2% In Early Post-Downgrade Trading

Not surprisingly, the action — following a weekend of worry about the US and of Europe — is decidedly risk off.

Just over an hour ago, the ECB announced a renewed bond buying program, clearly focused on Italy and Spain, but obviously this alone wasn’t enough to prevent early damage.

Gold has surged to $1691/oz, a new record.

S&P futures are off about 2.7%. Markets have come back a bit, as US futures are now off less than 2%. A promise of liquidity from the G7 countries is helping things.

In early Tokyo trading, the market is down about 1.5%.

So far, not total bloodshed.

Here’s the chart of gold instantly spiking.

chart

For a fuller guide to the downgrade and its market impact, see here.

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