The gold has come under pressure following the minutes of the Fed’s last 12 December meeting which has ended to new timely unlimited buying of US treasuries by $45b monthly as the minutes have shown that there is tendency of cutting the QE stance by 2013.

The markets have watched strong dollar buying higher treasuries yields and drop in the equities market but that can be an overreaction as the text which came out from that meeting was clear depending on the economic changes as it has said that there is no change by falling of the unemployment rate to 6.5% and rising of the inflation to 2.5% and that what should be tracked by the markets. So there can be an explanation from the fed in favor of that direction of stimulation as there is no fear of the inflation upside risks and as the unemployment rate stands still in need of getting back.

XAUUSD could add to its gains versus the greenback trying for heading to 1700$ per ounce as the reached deal for averting the fiscal cliff in US could put pressure on the US dollar as the investors looked again for risky assets pushing up the US blue ships in the first session of the year supporting the gold in the same time as there was no withdrawing liquidity out from the economy for restoring the financial position in US showing inflation upside risks offering defensive place for the greenback again.

From another side, the deal can help the demand for commodities generally not just the precious metals as the demand for manufacturing is not to abate too thanks to this reached deal which supported the commodities currencies versus the greenback driving the Aussie to be traded around 1.05 psychological level before some profit taken pressure could help this last currency during the US session.

Another 10 trillions yen have been added today to BOJ assets purchasing plan to worth 101 trillions currently after it had ended its 2 days meeting few minutes ago.

As this action was widely expected anyway, after The LDP party outstanding victory in Japanese lower house by 294 seats and its allied party Kometo by 31 seats last Sunday, Nikkie did not react positively as it is not under the pressure of the dovish US session closing and red future of the US indexes currently but it is still holding above the 10.000 psychological level while USDJPY came lower than 84 figure before it could rebound again whereas it was before the decision at 84.20 waiting for Shirakawa’s press conference.

The single currency is moving versus the greenback between the effect of the bad economic and political news from Europe and the increased market expectations of having hints of further funds to be pumped from the Fed next year when it finish its meeting next Wednesday by god’s will while the governmental financial effort are looking setting back to the market on  the fiscal cliff which is looking until now unavoidable with the time running with no clear clues of a reached deal between the Republican Party and the Democratic Party for even lowering its massive negative impact which can cost the American families from $2k to $5k a year cutting the GDP growth by 1% approximately by God’s will with no concession until now because Obama seems insisting on the tax hikes and the republicans are still pushing for cutting further health care spending showing that there can be no change of last year last summer agreement to start the austerities measures from the beginning of next year by cutting the govern mental spending by $109 bln and ending Bush’s tax cuts after it has been extended before for another 2 years and imposing new taxes to the higher than 250k$ income a year families ending emergency unemployment benefits to cut the deficit by about $550 bln next year in a plan for saving 7 trillion dollars in 10 years.