US equities will wash them selves again while finance spins with volatility. The Dow will test its support of 11,900 and it will give Bernanke the excuse to pull the trigger on more QE. All the while gold will stay at a premium. The dollar will have strength versus the euro, and so it will be the former that follows gold's moves, as it is always the stronger fiat that follows gold. Silver and oil, since they trade inversely the dollar, will find their support levels, but their range will tighten.
QE continues today, for if it did not, the depression would be realized. He will have to leverage his gold reserves further, but this is the cost to his benefits. His benefit will be to monetize more trillions of Treasurie bonds, alleviating his Federal Reserve of the chore of holding worthless assets. He will love to watch equities fall into August.
The debt ceiling will fuel political debate, and will keep the eye off of the real prize: further monetization. The debt debate is inane; it does not matter. Raise it, and inflation will make the dollar absolutely worthless. Do not, and all bonds will escape from purchase. It is a lose lose situation.
The only solution is to reconstitute real monie, and if America does not do it, another entity will do it for them. Lagarde in all her fury is already arm twisting, and given the chance, she will play cop and say, 'I told you so.' The IMF would love to have the responsibility of the reserve currencie, and if their SDR is thought to be backed by gold, the dollar will have to be the same. Yet this will be on globalist terms, and America will have little choice to lay down their wealth in the hands of global bankers formally.