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US Treasury returns focus to debt limit	16:37 FT.com - US and Canada - Politics
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US economy could handle short fall over 'cliff'	16:31 Knoxville News Sentinel, Tennessee - Business
US Treasury "Rises Above" The Debt Ceiling - Now What?	16:28 Zero Hedge
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Nikkei seen testing 20-month high as yen weakens	16:19 Reuters - Economy
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Treasury Advises That U.S. Will Hit Its Debt Limit In 5 Days	16:15 Forbes.com - Business
US Treasury bond market at a glance	16:15 York Dispatch, Pennsylvania - Business
US Treasury to take steps to avoid debt ceiling	16:08 NBCNews.com
Forex: USD/JPY prints fresh 2-year highs	16:03 FXstreet - Forex News
Gold demand set to pick up in new year	16:01 The Times of India - Indo-Pak Ties
U.S. holiday retail sales growth weak	16:00 The Daily Star, Lebanon
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Philippines Imposes Currency-Forward Caps to Restrain Peso Surge	15:52 Bloomberg - Markets - Currencies
Peso Yield Premium Lures Union in Upgrade Bet: Southeast Asia	15:52 Bloomberg - Markets - Currencies
Factbox: Treasury's tools to delay hitting debt limit	15:51 Daily Press, Virginia - Business
2012 Holiday retail sales see biggest slump since 2008	15:44 Bizjournals - Portland (Business Journal)
Panama Oct economic activity rises 10.2 pct yr/yr	15:39 Reuters - Economy
US Treasury in debt limit delay	15:36 BBC
The Fed Boosts The Economy, But What About The Risks?	15:36 NPR - All things Considered
Three Ways To Play Mexico's Economic Growth In 2013	15:31 Investors Business Daily - Investing
Chart Of The Day: Retail Sales & Excuses	15:28 Zero Hedge
Treasury to take steps to keep paying bills as debt limit nears	15:26 LA Times - Money & Company
Treasury unveils plan to buy time under debt ceiling	15:19 Reuters - Economy
Japan economics minister says yen heading for appropriate level	15:17 Business Times Online - Asia
Dollar jumps to 2-year high vs yen	15:05 The Oklahoman
Train Reading: Jeff Gundlach Expects Yen to Collapse	15:04 WSJ: Market Beat (Weblog)
How slide in yen can give Toyota an edge over Hyundai	14:59 The Economic Times
Yen drops to 2-year low against dollar	14:59 ArabNews - Economy
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US Treasury to take "extraordinary measures" by Dec 31	14:53 AGI.it
Treasury and the Borrowing Limit	14:53 The Motley Fool
Analysis: Japan's yen offensive may give Toyota an edge over Hyundai	14:52 Reuters - Business
FOREX-Yen falls sharply as Japan's Abe vows to weaken it	14:50 Reuters.co.uk - Currencies - Asian Currency
US Treasury to take steps to avoid borrowing limit	14:47 NBCNews.com
Gold up in thin post-Christmas trade	14:47 The Economic Times - Markets
Why Japan's "Lost Decades" Economic Depression Are Headed For America in 2016	14:47 The Market Oracle - Investor Education

Gold Dives Deeper into Range

by Peter A. Grant

Dec 20, AM
(from USAGOLD.com) --

Gold came under renewed selling pressure on Thursday, weighed by a bigger than expected upward revision to U.S. Q3 GDP, which diminished the yellow metal's appeal as a safe-haven. Gold fell to a new four month low, pushing below the 200-day moving average and leaving the market fully entrenched in the lower half of the $400 dollar range that has dominated for the past year.

The third report for U.S. Q3 GDP came in at 3.1%, on expectations of 2.8% and 2.7% previously. With Fed QE now tied to employment, better than expected economic growth raises the possibility that the Fed may be able to remove extraordinary accommodations ahead of schedule. Right now, Fed central tendencies suggest the potential for the jobless rate to dip below the targeted 6.5% level sometime in 2015.

We've seen these kinds of so-called "green shoots" in the past (remember the "recovery summer" of 2010?) only to have harsh reality settle back over markets. With the fiscal cliff still looming and our national debt near the $16.4 trillion ceiling, there's plenty to still be worried about on the recovery front. The Fed has already committed to $85 bln in asset purchases per month beginning in January, so their balance sheet is headed toward $4 trillion. Even if we were to reach 6.5% unemployment in say late 2014, that balance sheet would be well in excess of $4 trillion by then.

As a result of this debasement, the dollar has come under pressure, dropping to new eight-month lows against the euro. The dollar index has fallen back to 79.00, levels not seen since mid-October. While the dollar and gold have become correlated in recent weeks, the more traditional relationship tends to be inverse. Once the short term speculators are flushed out of the paper market, we anticipate that gold will rebound. Physical buyers have already been taking advantage of these lower prices We've seen this play-out time and time again throughout the secular bull market.

Note: I will be on holiday beginning 21-Dec. This page will not be updated in my absence. Please see our Breaking Gold News page for updates. Merry Christmas and Happy New Year to all.

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Opinions expressed in commentary on the USAGOLD.com website do not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell any precious metals product, nor should they be viewed in any way as investment advice or advice to buy, sell or hold. USAGOLD, Inc. recommends the purchase of physical precious metals for asset preservation purposes, not speculation. Utilization of these opinions for speculative purposes is neither suggested nor advised. Commentary is strictly for educational purposes, and as such USAGOLD does not warrant or guarantee the accuracy, timeliness or completeness of the information found here.

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Gold Dives Deeper into Range