GOLD 0.51% $1,391.7 gold futures

does the aud underporm gold in 2014

  1. 4,488 Posts.
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    The US is finally showing real signs of recovery. And so it should after having trillions of dollars of stimulus thrown at it & zero interest rates. The US has also been enjoying a discount on its energy price due to the gas & oil sands revolution in North America & the inability to export product. For argument's sake lets say the US economy does continue to improve.

    Does the USD strengthen & if so at a quicker rate versus gold or the AUD?

    One of the main factors of the US very slow recovery has been contributed to its cheap energy. There is now a lot of talk that the US will accelerate the ability to export energy & gas in particular. This should negatively impact the world gas price. Other countries such as Russia & Iran among others are also looking to ramp up gas exports & then there is Australia of course.

    I was on the periphery of the funding deals for some of the massive gas projects being built in Australia & my fear was that supply globally was going to ramp up dramatically in the coming years & what did this mean for the economics of these projects.

    Being mostly USD flow based projects perhaps the impact isn't so big on the AUD, however if any were mothballed it would certainly have an impact. Lower prices will also mean any of the Aussie based stake holders will have less retained earnings.

    So back to the question. Where is the AUD from now & where is gold?

    So where is AUD/Gold?
 
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