Debt default unlikely; Gold, silver price surge soon also unlikely - Gary Wagner
(Kitco News) - The chances are slim that no agreement will be reached in Congress regarding the extension of the debt ceiling, said Gary Wagner, editor of TheGoldForecast.com.
"The key is, there's going to be a vote. It looks like they're going to kick the can down the road [through] a vote as to how to fund the government from running out of money to service its debts and its payment," Wagner told David Lin, anchor for Kitco News on Monday. "I don't think we'll see a debt default."
Gold has historically held an inverse correlation to the U.S. dollar, but there has been periods in the last year where they moved in tandem.
Recently, the inverse relationship has resumed, and the strengthening U.S. dollar has put pressure on gold.
On silver, Wagner noted that its historically tight correlation with gold has broken down this year, as the two metals' prices diverged.
For Wagner's outlook on the gold and silver price, watch the video above. Follow David Lin on Twitter: @davidlin_TV.