ann: trial mining update, page-79

"Wish that Gold would make the jump back into the $1500+ range soon!"

Looks like its not in hurry to rebound in USD terms just yet Bruce.

Looks like the broad US market is too high for Bernanke to back off from tapering talk. Had markets continued to correct instead of bouncing the last few days then he may have been able leave out any tapering talk any time soon. I think he can't afford to let markets go too far into bubble territory so the tapering talk will likely continue to keep some sort of a limit on markets.
Then if markets drop too far he can change his tune again to support markets.
How this affects gold is guess work because gold is nowhere near its highs nor bubble territory IMO.

I know the traders don't care about the AUD POG as much as the US but very fortunately for Aussie producers unlike their US peers, the AUD falling is a very much needed buffer against the falls in US POG.
When gold was $1600 and AUD was 1.03, Aussie producers were selling at $1550. With gold now at $1345 and AUD at 92.7, our producers will now be recieving $1450. Thats a drop of only $100 or 6% but share prices have dropped by 50-80% for many producers just in the last couple of months. Even allowing for leverage to earnings, the falls appear to have more than factored in the AUD POG fall of $100.

I think the AUD has now clearly broken support after a failed brief rally attempt. I see it heading into the 80-90c range. If it averages 85c, the USD POG could fall to $1230 and we still sell gold at $1450. I don't know if gold will fall to that level but I feel the AUD has more than enough momentum to do so.
Expect volatility to continue for sure but fundamentals have not been affected nearly as much as the sp's of our gold companies.