gold now new records, page-8

Reiner,

$A won't get much stronger now, in my opinion. In the short-term, the USD seems to have some support. However, eventually all currencies, including $A, will be smashed against gold.

We'll probably see the RBA keeps rates lower than they should be. I think they will probably hope for the banks to raise rates independently so that they don't have to.

If we have a continued down-turn in the Aussie property markets, this will probably be a catalyst for $A weakness, due to the government intervention that would be required should things become difficult.

Also, as a contrarian indicator, Christopher Joye is righting some strange commentary such as Aussie dollar becoming a semi reserve currency and calling for $1.50. Whilst any number against the USD is theoretically possible, it would only occur if the USD starts to completely lose confidence and reserve status. Should this occur, money flows will not go to the AUD as a safe-haven. Based on his extremely bullish comments, I think the opposite will happen.