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By Carla Mozee, MarketWatch

LOS ANGELES (MarketWatch) — Prices for gold fell in Monday’s electronic trading session, suffering along with other metals as the U.S. dollar gathered strength.

During Asian trading hours, gold for June delivery

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-0.36%


 fell $6.70, or 0.5%, to $1,429.90 an ounce.

Gold had also retreated Friday, slumping 2.2% on the Comex division of the New York Mercantile Exchange.

Monday’s losses for gold futures came as the dollar

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+0.12%


 stretched gains against key rivals including the Japanese yen

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-0.2750%


 and the euro

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+0.0351%


 . A stronger dollar tends to pull down prices for gold and other dollar-denominated commodities as it makes them more expensive for holders of other currencies.

The dollar got a boost as investors considered the possible curtailing of monetary-policy stimulus by the U.S. Federal Reserve. The central bank has reportedly mapped out a plan for winding down its program of buying $85 billion in bonds each month. Officials were trying to clarify the strategy so markets don’t overreact to their next moves, according to The Wall Street Journal’s report.

Bringing the Fed’s bond-buying program to an end would make the U.S. dollar more attractive in terms of yield, analysts have said.

Meanwhile, declines in holdings in gold-backed exchange-traded funds remained a concern in the market. Gold holdings in the SPDR Gold Trust

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-0.86%


 fell about 11 metric tons to 1,051.65 metric tons as of Friday from a week earlier. Declines in gold holdings in the largest U.S. gold-backed ETF have been cited among the reasons for the nearly 8% drop in gold futures in April.

However, analysts said Asian demand for physical gold has been strong.

Prices for other metals were mostly lower on Monday. Silver for July delivery

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-0.31%


  fell 9 cents, or 0.4%, to $23.57 an ounce, and copper for July delivery

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+0.06%


 was off about 1 cent, or 0.1%, at $3.345 a pound.

June palladium

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-0.31%


 lost $2.55, or 0.4%, to $703.15 an ounce. July platinum

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+0.13%


 , however, rose $1.90, or 0.1%, to $1,487.90 an ounce.

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By Steve Goldstein, MarketWatch

WASHINGTON (MarketWatch) — The U.S. economy is growing at a “moderate” pace, as housing’s rebound and the continued recovery in the auto sector offset weaknesses stemming from federal government budget cuts, the expiration of the payroll tax cut and winter weather, the Federal Reserve said Wednesday.

The so-called Beige Book released by the Fed, covering the period from late February to early April, is just slightly stronger in tone than the last Beige Book, which said the economy was growing “at a modest to moderate” pace.

Of the Fed’s 12 districts, five reported “moderate” growth, five reported “modest” growth, and New York and Dallas reported slight accelerations.See nuggets from the Beige Book.

The Beige Book breakdown doesn’t come as much of a surprise and is backed up by recently released data. “Particular strength” was seen in residential construction and automobiles, but several districts reported uncertainty or weakness in defense-related sectors.

Automotive output in the first quarter grew at a 13.2% annual pace and construction supply output jumped 15%, the Federal Reserve had said on Tuesday in its industrial production report.

Low interest rates have spurred both home and car sales, while the so-called sequester has rattled the defense industry with the automatic budget cuts.

Consumer spending grew modestly, with higher gasoline prices, the expiration of the payroll tax cut and winter weather restraining growth. Retail sales in March fell by the most in nine months, the Commerce Department said last week.

Oil and natural gas activity remained “robust” and loan demand was steady to slightly up.

Employment conditions remained unchanged or improved somewhat, and wage pressures were generally contained, save for particular occupations with shortages like information technology, construction and engineering.

The growth outlook remained on the optimistic side, with growth mostly expected at the same or slightly improved pace. Uncertainty was centered on fiscal policy and health-care reform.

The Dallas Fed wrote this Beige Book. That duty is rotated between the 12 Fed districts.

By Paul B. Farrell, MarketWatch

SAN LUIS OBISPO, Calif. (MarketWatch) — America needs a new war? For the economy to survive? Job market to revive? Capitalism thrive? Maybe. Here’s why:

Forbes reported that GDP data “fell for the first time in three and a half years in the fourth quarter … declining by an annualized 0.1%” while “economists had expected GDP to increase 1%. A dramatic 15% drop in government spending dragged on economic activity. Defense outlays were cut the most, falling by 22.2%, the largest decrease in defense since the Vietnam War’s end in 1972.”

Wars stimulate the economy and we are a warrior nation: Didn’t WWII get us out of the Great Depression? And the Iraq/Afghan Wars, longest in history, sure stimulated the economy … the Pentagon war machine doubled from $260 billion in 2000 to roughly $550 billion last year … GDP increased 50% from $10 trillion to $15 trillion … and federal debt tripled to over $15 trillion from under $5 trillion back when our leaders believed “debt didn’t matter.”

But most of all, wars are great for capitalists: Forbes list of world billionaires skyrocketed from 322 in 2000 to 1,426 recently. Yes the adjusted household income of the rest of Americans flatlined the past generation.

But still, life’s great for capitalism and for 1,426 capitalists across America and worldwide, a tribute to the “disaster capitalism” doctrines of Nobel economist Milton Friedman and Ayn Rand’s free-market capitalism dogma.

American politicians conflicted, cut debt but not the war machine

However, with the Afghan and Iraq Wars winding down, capitalism needs an economic stimulus: a new war. It’s so American: Neocons believe a new war would boost GDP. They must be praying North Korea’s Lil’ Kim will do something impulsive. Give us an excuse.

Yet Washington politicians are conflicted. Some want to shrink government, cut debt and are cheering the “dramatic 15% drop in government spending.” On the other hand, the “largest decrease in defense since the Vietnam War’s end in 1972” is unnerving neocons, warhawks and politicians heavily dependent on defense contractors, lobbyists and voters at military bases in their districts.

So what’s next? If American capitalism needs a new war to survive … if we’re slowing down the Afghan and Iraq war theaters … if North Korea’s just saber-rattling … if China has too much to lose … if new wars are fought by drones from video screens in one of the Pentagon’s 70 drone bases … but if all the military-industrial complex capitalists who get rich off wars are still itching to attack … then who will trigger a new war for America’s “disaster capitalists?”

10 unpredictable flash points where new global wars can ignite

Although black swans are by definition unpredictable, there are 11 hot-spot pressure points already ramping up global tension and conflicts. And suddenly, the pressure can easily spark over the line, hit a flash point, and be ignited by any one of multiple unpredictable events that suddenly explode, and spread like a virus to all 10.

Then capitalist warhawks can take advantage of it, as they did by linking 9/11 with launching the Iraq War. So yes, in Worldwatch Institute’s report we see at least 11 challenging black swan hot spots that could surprise and ignite new wars:

Here’s Worldwatch’s blunt challenge: “Planet’s Tug-of-War Between Carrying Capacity and Rising Demand: Can We Keep This Up?” No: The planet’s “shrinking resources” cannot satisfy the exploding population’s “growing demand for food and energy.”

Why? It’s “impossible, we can’t keep this up.” Robert Engelman warns: “Rising trends will not last forever. They can’t.” The world will collapse under epidemics, famines, warfare.

When? A decade ago the Bush Pentagon predicted that “by 2020 there is little doubt something drastic is happening,” they told Fortune. “As the planet’s carrying capacity shrinks, an ancient pattern of desperate, all-out wars over food, water, and energy supplies would emerge … warfare is defining human life.” 2020 is dead ahead.

The coming capitalist wars reminds me of fighting depicted in the brutal “Hunger Games” movie. A perfect metaphor. With over one billion of seven billion people in the world living on two dollars a day … with accelerating food and commodity prices pushing more humans and emerging nations over the edge … with rising real food shortages, real hunger, real malnutrition, real starvation, real poverty … with the living standards of developed nations demanding an ever-increasing share of ever-scarcer resources … we see Worldwatch’s 11 vital signs as hot spots and black swans that can easily ignite rebellions, revolutions and full-scale wars in the near future: