Seafield Resources Ltd V.SFF

Gold On The Rise ...!!

[AStockaholic]

Is gold firming for a rally as US faces another downgrade?

NEW YORK (Commodity Online): With Gold futures relatively range bound for the past month, uncertainty with regard to its trend continue. However, most seem to be bullish on gold in general considering the economic threats from Europe and US.

So what will propel gold beyond its strong resistance at $1680 into new highs?

The US looks a possible trigger. Bank of America Merrill Lynch (BofAML) had expressed concerns that the US may face a second downgrade from its Triple-A status from another major agency before the end of the year.

“The credit rating agencies have strongly suggested that further rating cuts are likely if Congress does not come up with a credible long-run plan (to cut the budget deficit). Hence, we expect at least one credit downgrade in late November or early December when the super committee crashes”, the BofAML report said.

//////////////////

US likely to suffer second downgrade – Merrill

Author: Hannah Smith

IFAonline| 24 Oct 2011 | 08:17

Categories: Economics / Markets

Topics: US| Moody's| Bank of America Merrill Lynch

The US is set to see another ratings agency strip it of its AAA-credit rating by the end of the year, Bank of America Merrill Lynch has predicted.

Merrill said the move is likely to come by the end of 2011, as agencies remain concerned about the nation’s budget deficit, Reuters reports.

The trigger would be a likely failure by Congress to agree on a credible long-term plan to cut the deficit, the bank said in a research note published on Friday.

/////////////////

U.S. rating likely to be downgraded again: Merrill

Sun Oct 23, 2011 3:20pm EDT

By Walter Brandimarte

NEW YORK (Reuters) - The United States will likely suffer the loss of its triple-A credit rating from another major rating agency by the end of this year due to concerns over the deficit, Bank of America Merrill Lynch forecasts.

The trigger would be a likely failure by Congress to agree on a credible long-term plan to cut the U.S. deficit, the bank said in a research note published on Friday.

A second downgrade -- either from Moody's or Fitch -- would follow Standard & Poor's downgrade in August on concerns about the government's budget deficit and rising debt burden. A second loss of the country's top credit rating would be an additional blow to the sluggish U.S. economy, Merrill said.

"The credit rating agencies have strongly suggested that further rating cuts are likely if Congress does not come up with a credible long-run plan" to cut the deficit, Merrill's North American economist, Ethan Harris, wrote in the report.

"Hence, we expect at least one credit downgrade in late November or early December when the super committee crashes," he added.