Looks like I may have to upgrade my predictions for gold. I did say in my last blog; “if the U.S credit rating is downgraded then $1800 gold may be reached next year.” http://www.stockhouse.com/Blogs/ViewDetailedPost.aspx?p=118869
We will have to see if gold starts to run wild or not as nothing ever goes straight up. The remainder of the year will be interesting, as the market volumes will start to increase. I expect equity markets to continue to be beaten up but as I said before however don’t sell your gold and gold stocks.
Recrimination flew thick and fast among U.S. politicians, with each side seeking to blame the other for the downgrade and the impasse over how to solve the fiscal crisis.
Senator Jim Demint, a Republican, said Obama should demand the resignation of Treasury Secretary Timothy Geithner.
White House spokesman Jay Carney said Obama believes "it is important that our elected leaders come together to strengthen our economy and put our nation on a stronger fiscal footing."
Xinhua scorned the United States for a "debt addiction" and "short sighted" political wrangling. China, it said, "has every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets."
"International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country," Xinhua said.
Full story http://www.reuters.com/article/2011/08/06/us-eurozone-idUSTRE7712HB20110806