As Congress clashes over borrowing and debt, gold is likely to beat stocks

MarketWatch/Mark Hulbert/7-31-2021

“Gold could receive a boost in coming days, while stocks could suffer, as investors focus on a matter they have mostly overlooked: political brinksmanship in Congress over raising the U.S. government’s debt ceiling.”

USAGOLD note: Most believe that Congress will eventually raise the debt ceiling like it always does as a matter of political self-interest. It’s what happens though between the time the debt ceiling becomes due and a settlement is finally reached that could bring unforeseen consequences. Hulbert points to warnings from two top credit agences that “a deterioration in governance” could translate to a downgrade in the U.S. credit rating – an event that in 2011 pushed the gold price 10% higher over a 30-day period.

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