An inverse head and shoulders formation has occurred in the POG in USD vs
A head and shoulders formation in the GOLD EFT here on the ASX
hmmmmmmmm
So if POG goes at 30 degrees up does this mean POG in AUD is going to go at 30 degrees down?
Put simply no. IMO I am of the thought that POG in AUD is also heading up (thus GOLD EFT), but not at 30 degrees as suggested LOL
Looking at AUD/USD it appears that our currency converstion is heading for the low 80s over the next few weeks/ month.
Senario: Lets say it hits 82 and sits on 80, what would be the POG in USD should the POG in AUD stay at 1200? Well I suspect the answer to that question is 960 USD.
Is 960 USD acheivable in the next few weeks/ month? Yep!
Is 1000 USD + acheivable in the same timeframe? Yep!
Is >82c AUD/USD acheivable within these timeframes? Less likely I would have thought, but possible.
My thoughts are POG in AUD to rise perhaps a smigdet to say 1250 - 1300 AUD as POG approaches $1000 USD. A small increase as we approach parity with USD.
At some point however, AUD will have to 'decouple' with the POG too for us to see its value in an infationary cycle.
