Gold has pushed to new 6-week highs, spurred by rising risk appetite and a weaker dollar. Silver reclaimed the 34 handle for the first time in 6-weeks. The euro rose to new 3-week highs against the greenback, nearing 1.30 once again. Meanwhile the S&P 500 reached 2-week highs above 1,400 in abbreviated holiday trading.
While efforts to reach a deal on Greece earlier in the week were unsuccessful, hopes spring eternal, and optimism is running high once again for an agreement by Monday. Better than expected November German Ifo sentiment also buoyed the single currency.
Debate over the fiscal cliff will continue after the holiday, and hopes remain high for some kind of resolution. Additionally, the fragile Israel/Hamas cease fire is holding in Gaza, further contributing to the risk-on environment.