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NEW in the last 5 minutes www.usagold.com --LIVE NEWS--
Indian rupee, US dollar likely lower; corporate inflows watched	21:45 Indian Express
15 to 30 minutes old www.usagold.com --LIVE NEWS--
Watch Out Euro Bulls, Draghi Is Watching You	21:30 CNBC.com - Europe
Govt doing its best to keep food inflation down	21:29 The Financial Express - Economy
Forex Flash: AUD/CAD squeeze higher remains - TDS	21:28 FXstreet - Forex News
Copper Gains to Highest in Three Weeks on China Demand Optimism	21:23 Bloomberg - Markets - Commodities
30 minutes to 1 hour old www.usagold.com --LIVE NEWS--
Businessmen more confident in economy	21:17 New Vision, Uganda - Business
On Monetary Policy Outside of a Balance Sheet Recession	21:09 The Pragmatic Capitalist (Weblog)
Forex: USD/SGD remains range bound in Asia session	20:58 FXstreet - Forex News
Treasury planning to tax profits on second homes	20:56 Ha'aretz - Business
1 to 2 hours old www.usagold.com --LIVE NEWS--
Phoenix Gold appoints new non-executive director	20:41 Proactive Investors - Australia
FOREX-Euro tripped by ECB, Aussie on defensive ahead of RBA rate decision	20:41 Reuters - Economy
CBD planning to issue dollar bond	20:34 Gulf Daily News - Business
Forex:GBP/JPY edges lower during Asia trade, approaching support at 153.50	20:28 FXstreet - Forex News
April inflation at 13-month low	20:24 ABS-CBNnews.com - Business
Ringgit advances against US dollar, highest since August 2011	20:21 The Star Online
Forex Flash: AUD/USD, torturous range at risk? - ANZ	20:18 FXstreet - Forex News
Gold Declines as Rebound Hurts Physical Demand; Silver Tumbles	20:14 Bloomberg - Markets
Commodity Currencies in Focus with Key Australian and Chinese Data Due	20:10 Daily FX
Bright Lights, Big City, Bigger Prices - Where Inflation Hides	20:08 Zero Hedge
Shop-price inflation falls to 0.4%	20:07 The Scottish Herald - Business
Long way to go to achieve a balanced economic recovery	20:07 The Scottish Herald - Business
Rubber Jumps Most in One Month as Yen Near to Four-Year Low	20:03 Bloomberg - Markets - Commodities
Slow Reforms Cloud Vietnam’s Economic Growth Outlook, IMF Says	20:01 Bloomberg
Half of Canada's mid-sized cities yet to recover from recession	19:56 CBC.ca
Ask Matt: Is silver a good investment going forward?	19:54 USA Today - Personal Finance
US dollar poised to re-test 100 yen mark	19:54 The Nation - Business
Traders say PTI to pull country out of economic mire	19:54 The Nation - Business
2 to 4 hours old www.usagold.com --LIVE NEWS--
Forex: USD/JPY dips below 99 on Aso's comments	19:47 FXstreet - Forex News
Forex: AUD/USD remains in narrow range after Trade Balance data	19:47 FXstreet - Forex News
INDUSTRY: Innovation Economy Expo is Thursday	19:37 The Press-Enterprise, California - Business
China plans to cut govt economic intervention	19:37 China Daily - BizChina
Gold’s Peak Seen Over by Coutts on Outlook for Dollar, Inflation	19:36 Bloomberg - Regions
Coca-Cola Amatil's Earnings Hit by Price War, Weak Consumer Spending	19:27 Fox Business - Industries
Silver Wheaton Earnings Are on Deck	19:12 The Motley Fool
Richard Brown, retired CHP officer, dies at 85	19:09 Press Democrat - Sports
Forex: AUD/JPY closes lower as resistance at 102.50 continues to hold firm	19:07 FXstreet - Forex News
Dow Electronic Materials MICROFILL™ THF-100 Electrolytic Copper Wins New Product Introduction Award from PCD&F	19:05 Business Wire (Press Release)
Japan’s economy minister Amari: Share prices are a sign of growth in the Japanese economy	19:03 ForexLive.com
What Is A Gold Standard?	18:58 Zero Hedge
Draghi: ECB Stands Ready to Act Again	18:49 CNBC.com - Europe
China Focus: "Gold rush" reveals scant investment options	18:49 China.org.cn - Economy
Auroch Minerals completing Guy Fawkes gold drilling in Mozambique	18:41 Proactive Investors - Australia
Cleveland Mining has 60m intercept at Premier gold mine that shows potential scale	18:31 Proactive Investors - Australia
Orinoco Gold granted halt, Brazilian exploration results pending	18:31 Proactive Investors - Australia
Oil & gold booms are over: Ruchir Sharma	18:30 The Economic Times - Markets
Forex Flash: EUR/USD, any fall to 1.25-1.27 opportunity to build longs - ANZ	18:27 FXstreet - Forex News
Asian Stocks Rise Second Day as ECB Prepared to Cut Rates	18:22 Bloomberg - Worldwide
How Singapore's currency club fell apart	18:11 The Star Online
Foreign institutional investors more bullish on India	18:10 The Economic Times - Markets
3 top picks from Odlum Brown’s Hank Cunningham	18:09 The Globe and Mail

Gold Consolidates Recent Gains

by Peter A. Grant

May 06, AM
(from USAGOLD.com) --

Gold is consolidating after posting two consecutive weeks of gains. The yellow metal remains confined to Friday's range thus far as the battle between paper sellers and physical buyers continues to play out.

Continued soft PMI data and a weak retail sales print out of Europe is just the latest evidence that the eurozone remains in trouble. The euro is under pressure, which has lifted the dollar and is keeping gold in check. However, as the EU founders, it's worth remembering that gold was trading just above $1,000 an ounce when the euozone debt crisis commenced in October 2009 with the announcement by Greek Finance Minister George Papaconstantinou that his country's deficit would be twice previous estimates.

In the intervening years, the U.S. has managed to keep its economy sputtering along just above stall speed with rates at zero and by pumping trillions in liquidity into the system. Europe has been reluctant to follow suit, although last weeks 25bp cut in the refi rate to a record low 0.5% may be the first crack in the bulwark we've seen in some time.

I think part of the reason that gold has been more corrective in recent years is the broad perception that global central banks have been effective in managing the string of crises that have emerged in recent years, averting economic catastrophe. While a full-on catastrophe has has not happened (yet), anyone who assumes the risk of catastrophe is behind us, does so at their own peril.

Mounting growth risks will bring debt and funding crises back to the fore as tax revenues fall once again. This will likely force central banks to ease further. The ECB and the BoE have room for further rate cuts, but in the U.S. and Japan rates are already at zero. Their only option is print even more than they are already doing.

Japan has already gone 'all-in', pledging to double their monetary base within the next two years. Yet the latest CPI print shows prices are falling at an increasing rate, -0.9% y/y in March, versus -0.6% y/y in Feb. The BoJ has set out to try and change the mindset and culture of the nation; from a country of savers to a country of spenders. This is no small task, and I think the Abe government and the BoJ realize it, but even the 'shock and awe' of Abenomics may prove insufficient.

The Fed suggested last week that they are just as ready to increase asset purchases as reduce them, depending on how the economy is doing. For now anyway, the removal of accommodations seems a long way off.

What's worrisome is the prospect that the inability of central banks to create economic growth and inflation will incent them to push that much harder. Like the door that finally gives way after you throw all your weight behind it, the risk is that all that liquidity comes charging into the room. We know from history that the velocity of money can be unpredictable. When that "bang" moment occurs, all those crises dodged in the past may seem like mere child's play in light of what is ultimately unleashed on the global economy.

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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 Consolidates Recent Gains