The Fed justified its secondround of quantitative easing partly on grounds that the wealth effect of rising stock prices would stimulate consumer spending and, by extension, boost output and reduce unemployment.
The value of the U.S. dollar, and its effect on the price of gold, for 2013 will be largely influenced by the upcoming secondround of Fiscal Cliff decisions related to spending cuts, the impending Debt Ceiling decision and further Federal Reserve actions related to interest rates in response to the ongoing, sluggish economic recovery.