Gold futures (GLD +3.2%) settle more than $40/oz. higher, boosted by the belief that the debt default deal might prompt the Fed to delay reducing QE.
"The U.S. debt deal is seen (as) positive for gold by market participants, for good reason, since the whole mess is just being postponed by 3-4 months, which makes a reduction of Fed asset purchases rather unlikely for the time being," Commerzbank says.
Many probably believed gold would fall if there was no debt default, so a short squeeze likely is helping force prices higher.
Among the day's biggest equity gainers are gold miners (GDX +6.2%): NEM +4.8%, ABX +5.4%, GG +4.2%, GFI +3.9%, RGLD +7.1%, KGC +4.9%, NGD +5.3%.
ETFs: IAU, SGOL, PHYS, AGOL, DGL, UBG, DGP, UGL, DZZ, GLL, DGZ, UGLD, DGLD, GLDI, GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING.