Gold, Trump & NST, page-4

@Imo


I would be watching the AUD in particular with any trade polices that the new US adminstration uses against China as this will have an adverse affect on the AUD as this is our biggest trade partner. As gold is traded in USD and the AUD/USD weakens in Gold terms Gold prices would increase. There would be possible capital flight out of Australia to the US such investments affected could be bank shares and high yielding shares such as Telstra.

Banks has me interested as the US bond yield increases then for overseas investors it is more attractive then Aus banks but also Aus banks have to increase borrowing rates to cover their overseas borrowing costs which would suggest that home loans interest rates would increase.

There could be a problem there with a national high household debt problem and inflated house prices on the east coat which appears to be a white elephant in the room that is scarily mentioned or avoided.

Also in states such as WA and QLD house prices have remained stagnant or actually fell drastically in certain parts leading to larges losses already. One area to watch is the Pilbra area around Newman and Port Headland which was where the epicenter of the "BOOM" occurred.

Median house price for Port Headland

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