Debt-ceiling deal reached, but recession and stock-market drop may follow.

The recent debt-ceiling deal may not bring significant relief to the stock market due to concerns of an impending recession. The Federal Reserve tightening monetary policy and the end of fiscal support measures implemented during the Covid-19 era are expected to contribute to an economic downturn later this year. The debt-ceiling deal includes modest spending curbs, but one detail stands out: it will formalize the Biden administration's plan to end the freeze on student loan payments, which has supported spending over the past few years. The relationship between debt increase, interest rates, and gold can be complex and influenced by various factors. Gold has historically been viewed as a safe-haven asset, and its performance during a recession can be influenced by several factors.