find8,Fully agree that the possible downside in gold AUD terms...

find8,

Fully agree that the possible downside in gold AUD terms is significantly less than the USD downside. I have been warning gold bulls that the current price in AUD terms coincides with a USD price around US$741. Having said this, that is as far as bullion is concerned! The gold bulls out their cannot have it both ways though as a bearish USD gold price outlook is SUPER bearish for gold stocks represented by HUI, XAU, GDX etc which the aussie gold stocks track. I expect those indexes to fall at least 30% from current levels if the USD hits the US$700. Whilst downside in AUD terms is limited the current price is hovering between AUD$1130-1150 range. A break of AUD$1130 gives a target of AUD$1050. Stocks like SBM and RSG to name a couple would come under severe pressure if the AUD gold price falls to those levels! I for one though would be backing up the truck if you could get RSG below 50c.