Market News Update - 7th December 2012

Dear Friend/ Member,

Gold prices have fallen almost 3% over the last 2 weeks, settling this morning at around US$1,700 and AU$1,620 per ounce.

It seems that much of this has been driven by the continuing stalemate over the USA budget deal needed to avoid the US$600 billion 'fiscal clifff'. The 1st January deadline is fast looming and reports are that most of the selling has been institutional investors lightening their gold holdings.

In the backdrop of this selling there are continuing strong general market indicators including:

• In the USA retail sector gold coin sales for November were the strongest in 14 years.
• Holdings of SPDR Gold Trust GLD, the world's biggest gold-backed exchange traded fund, stood at record highs of 1,347 tonnes, up nearly 11 tonnes in its fourth consecutive month of gains.
• The Australian $ continues to hold steady at above US$1.04, despite the drop in interest rates.

We expect continued volatility over the coming weeks until an announcement is made by the USA lawmakers. Most commentators are suggesting a modest agreement and once established will likely push bullion markets higher.

Is this a time to sit and wait or choose your moment to buy in the dips?

We will be sending you our Monthly Precious Metals Report by Edward Meir early next week where we will investigate in more detail the indicators and likley outcomes for early 2013.

In the meantime, take a look at the attached CHART that shows the last 7 days spot trading price for Gold.

Or login to www.ausmint.com under your membership name and password and take a view of other combinations of charts such as comparisons to the ASX and other precious metals.

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