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Despite euro, international stocks had great year	16:38 USA Today - Market
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US dollar mixed on signals of US fiscal cliff deal	16:25 Channel NewsAsia - Business
30 minutes to 1 hour old www.usagold.com --LIVE NEWS--
Entitlement Crisis, Slow Economic Growth Era Begins	16:17 Investors Business Daily
News Summary: Gold advances; ending the year higher for a 12th straight annual gain	16:10 The Washington Post
Treasury takes new step to avoid debt limit	16:07 MarketWatch
New Summary: Gold ends higher for 12th year	16:07 Daily Bulletin, California - Business
Murky crystal ball for Ariz. economy	16:04 The Arizona Republic - Money
1 to 2 hours old www.usagold.com --LIVE NEWS--
Gold up 6 pct in 2012 after last-gasp rally on U.S. fiscal deal	15:47 Reuters - Business
Gold up 6 pct in 2012 after last-gasp …	15:47 Yahoo! India
Treasury: U.S. to hit debt ceiling today	15:46 Chicago Tribune
Treasury says hitting debt ceiling on Monday	15:46 Daily Press, Virginia - Business
Can IIT Delhi gold medallist Harsh Chitale revive HCL Infosystems?	15:46 The Economic Times
U.S. Treasury says hitting debt ceiling on Monday	15:44 Reuters - Economy
RUTH SUNDERLAND: From keeping a lid on inflation to a proper bank clean-up... Hopes for a happier 2013	15:37 This is Money - Investing & markets
Will Yamana Gold Help You Retire Rich?	15:34 The Motley Fool
China's Economic Stabilization Now Reflected In Equity Market	15:31 ForexPros.com
HorizonPoll: NZers Have Mixed Views On Economic Prospects	15:28 Scoop - Business
Could Post-Superstorm Sandy Rebuilding Energize The Economy?	15:25 NPR - Economy
Man dead in Wyo. reportedly potential copper heir	15:25 The Oklahoman
Gold ticks higher, on track for 12th annual gain	15:22 The Financial Express - Commodities
Gold finishes up 6.1pc in 2012	15:20 The Peninsula - Business
Gold jumps Monday, closes year with gains	15:16 UPI - Quirks
Singapore likely in recession after GDP data, say analysts	15:10 The Peninsula - Business
Economy Briefs: Stocks soar as budget deal seems more likely Monday	15:10 The Washington Times - Economy
Crude Oil Demand Decreases As US Faces Possible Recession	15:07 Energy Tribune
Silver Bay: another investment option to play the U.S. housing recovery	15:06 The Globe and Mail
Top economic predictions for 2013	15:06 The National - Economy
New Year revellers defy Spain's economic woes	15:04 Yahoo! UK & Ireland
Gold gains for a 12th consecutive year	15:02 The Age
FOREX-Dollar rises in thin trade, ends 2012 lower overall	14:53 Reuters - Economy
2 to 4 hours old www.usagold.com --LIVE NEWS--
Should the United States return to a gold standard? ProCon.org puts monetary policy debate back in spotlight	14:44 PR Newswire (Press Release) - Policy and Public Interest
Maestas named chairman of Albuquerque Economic Development board	14:40 New Mexico Business Weekly
US dollar share of FX reserves steady, euro share falls-IMF	14:33 Reuters - Economy
Are recession babies prone to be delinquent teens?	14:31 Reuters.co.uk - Health & Drugs
Gold edges up, gaining for a 12th consecutive year	14:28 Bradenton Herald - Business
Examining Silver Bay Realty Trust Corp: Is Two Harbors Spin-Off A Buy?	14:27 SeekingAlpha - Investing for Income

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