I agree there will be an 11th hour settlement, if not the default of the dollar would devastate the US stock market causing worldwide chaos; gold would go ballistics!

On the other hand, introducing more debt to an economy already unsustainable would add speed to the already swirling vortex of shrinking revenues in both governments and business sectors, increasing costs in government interest payments and these factors must result in decreasing federal spending programs. In turn this further adds to the vortex and translates into a disgruntled populace distrustful of anything the government does. Food and energy costs rise as the dollar falls further.

The end result with raising the debt ceiling is that gold goes higher and higher. If there is a fall with the announcement, it is only the short term trader effect and not the primary reason people are buying gold, i.e. preservation of wealth, protection against the coming scenario. IMO