The relevant question for Aussie holders of gold - who are...

The relevant question for Aussie holders of gold - who are really currency traders - as they pat themselves on the back is: what price will it be $AUD. They don't care what price the commodity trades at, they are only interested in foreign exchange.

I think you will find that if gold reaches 1400 it will hardly move in $AUD or possibly decline. The $US would decline and that means the $AUD will go in the opposite direction neutralising the commodity appreciation.

Aussie currency traders (otherwise mistakenly thought of as gold horders) need to be nimble to stay ahead of the game.