Equities were up a small amount today amid cautious holiday trading, but the U.S. dollar continued its climb to supremacy, helping push gold lower. But the dollar doesn’t tell the whole story today for gold.

The chief outside market influence, crude oil, was down severely again, by around 2%. Gold was dragged down on that ride.

Short coverers and bargain hunters decked the halls today and drove gold prices up by almost $20 (as of 4PM in New York). As we have warned recently, this is a volatile time of year and today proved the point. On top of that, investors are squaring their books as the year ends and the best info we have is that one or two major players jumped out of their short positions and voila...

Well, not so much gold and crude. Pricing continues under pressure for those two leading commodities and the end of the downward push is nowhere in sight.

The news today is dominated by the revision of U.S. GDP to reflect 5% growth in the third quarter. After starting the year in the negative by -2.1%, the world’s biggest economy has become a roaring beast out of a story legend. The second quarter saw 4.6% growth. Combined, year-to-date, that means that the economy is growing at a 3.75% rate for the year.

As oil continues its spectacular decline, and prices for gasoline start eyeing $1.50 per gallon in some places, inflation seems like some old fading cowboy from a Saturday afternoon movie serial riding into the sunset on his aged horse. Goodbye, Old Paint. (That’s the standard name for an old cowboy’s horse.)

The dollar is driving the world – and possibly driving a few countries like Russia and Venezuela crazy. The dollar is now at its highest since 2009, up almost half of a percentage point on the euro today. Is this a bet by some investors that the Fed is about to raise rates? We think rather it is an indication of just how powerful the U.S.

The Markets must have four stomachs. They chew, re-chew, re-digest and finally – well, maybe finally – settle on a group-think opinion.

Today that opinion says that the FOMC statement is good for stocks, good for America (cue the “Star Spangled Banner”), good for the world, for everything right and just in the universe. But just wait till tomorrow.

While the Fed left in place its notation that interest rates would remain stable for a “considerable time,” they also boldly underscored progress that was being made. Inflation is nearing the initial target of 2 to 2-1/2% (although plunging oil prices won’t assist in that), and the labor force’s long-standing underutilization is diminishing.

Like so many of the markets, gold seemed befuddled today. Lowering volume, choppy trading that surged then receded, and indecision based on flying rumors about what the Fed might or might not do, hampered gold.

In late afternoon trading, it is up about $1.50, although it is well off its overnight highs, currently trading at 1196-97.

Gold fell down and broke its crown today, but oil is plummeting toward a rendezvous with destiny. The equities markets can’t decide what to do, having been up in the morning but now definitively down in mid-afternoon.