Almost always when you see the gold price go down there is also...

Almost always when you see the gold price go down there is also a downward move in the AUD which helps offset the reduction. It isn't always a price saver of AUD gold, but helps ameliorate damage. Likewise when gold price goes up AUD usually strengthens at the same time.

Occasionally you will see them move in opposite directions for a short time, and it is here that you knows something totally different is afoot than the normal course of business.

Everybody knows POG is heavily manipulated/suppressed.

Hedging is a complicated 'art' I guess, and if they are not doing it maybe it is because of the strong correlation between POG and AUD movement that gives some sort of protection, also POG has been hit very hard since its high and the probability for sustained low price is maybe not considered a significant risk.

Since POG is highly artificial over the past number of years, it is possible if it is the desire of the central banks, BIS and so forth that they could trash it lower if they wanted. BUT I think the worry for them in doing this was demonstrated last time when everybody gorge on cheap physical gold. So pushing it too low gets a lot of physical sucked off the market and makes it even more scarce. (unless it is 'they' that wish to buy).