Why isn't the gold price higher?

There are several possible explanations for the failure of the gold price to take off despite the prospect that the US government may soon default on its debt. The most plausible is simply that the markets still think default will be avoided. Alternatively, participants might be taking a very sanguine view of the implications if the US does have to delay its interest payments, although we doubt this. A third explanation is that gold may no longer be regarded as a safe haven. However, we would expect the price of gold to jump in the event of an actual default.