I can't quite imagine how we can reach a scenario from where we...

I can't quite imagine how we can reach a scenario from where we are now, to where USD goes parity with AUD at the same Gold price (in USD).

We are certainly in a deflationary cycle where US dollar index is going higher despite printing trillions of dollars in a short space of time due to USD is considered 'safe haven' and most world debt is denominated in USD.

I don't know how much the American government would need to print but in my guess, they would need to print a lot more without the rest of the world not printing as much. But as in case of Australia, every government is issuing a lot of debt - so I'm not sure if we would look so attractive in comparison that AUD goes to parity with USD?

But assuming it did - barring another miraculous commodity boom completedly unforeseen now (which seems very unlikely), this must mean that the confidence in USD is significantly lost due to inflation such in 70's. In this case, can Gold possibly remain where it is now? I just don't see how the waning USD would not affect POG significantly to the upside.

In either case, I don't think the scenario of AUD going parity with USD at the same POG is very likely that we need to worry about at least in the next couple of years IMHO.