..right now, with Dollar down (and AUD up) along with Gold down, it is a short term pain for AUD Gold, which has benefited rather substantially up to last month.
..but if we see a rebound in the US dollar which pushes AUD lower, a lower AUD would help buffer AUD Gold against a falling Gold price (possibly towards $2800-3000), but not going to trade (as soon as I sell, it will go up).
..the writing is on the wall that USD will go down a lot lower (even after rising short term, if it does) and that would be when Gold will run fast and hard, way more than offset against a rising AUD.
..if equities are going into final Melt-Up stage, expect more $$ moving into tech and shunning gold stocks while Gold loses it safe haven allure in the short term. Then when equities face its reckoning crash/train wreck, gold stocks along with Gold would also tumble, gold stocks more than Gold, except that AUD Gold holds up better with AUD falling on Risk-Off.
..I don't need to trade my Gold nor see a need to because I know Gold isn't finished at this point. But gold stock hodlers need to think hard about their positions because the big gains enjoyed faces the above conundrum as outlined above (higher equities translate into higher prices for tech, not gold stocks, while if equities collapse, everything falls). The only hope that does not happen is if Gold makes the next spurt higher after consolidation, but waning trade war and improving equity markets makes Gold somewhat more susceptible in the short term.
