I heard on Bloomberg that an expert has predicted oil to fall to...

  1. 394 Posts.
    I heard on Bloomberg that an expert has predicted oil to fall to $28 in the US spring (that starts March). Another expert disagreed with that suggesting oil will trade between $30-$35. These are not amateurs. They are highly paid professionals.
    What about gold? It's $445. That's good news for US gold producers. But before you clap your hands and jump up and down with joy just think about this. Gold's overnight gains have been wiped out yet again by a stronger Aussie dollar. So consider these questions and points. When gold corrected to $375 it was worth more in Aussie dollars than it is now, which means that Australian gold producers were making more money then with gold at $375 than now with gold at $445. Not long ago gold was over AUD600. But the US dollar gold price was much lower. However a stronger US dollar and of course a weaker Aussie dollar meant that for Australian miners they got a good gold price in Australian dollars. Is it possible that gold might go to that magical US$500, but the Aussie dollar be 90 cents? It's over 78 right now. In which case for Australian miners they will be getting a lower gold price than now? Could it be possible that what is best for Australian gold miners'profits is a STRONGER US DOLLAR which means a WEAKER AUSTRALIAN DOLLAR and even though the gold price will be lower in US dollars is could be HIGHER IN AUSTRALIAN DOLLARS? Think about these things and YOU DECIDE. Wolfie NEVER gives advice, just Wolfie's opinion or asks some questions where YOU decide what is the right answer, NOT Wolfie.
 
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