A higher USD = A lower AUD and a lower AUD = A higher or at worse a steady AUD gold price [ when gold drops only because the USD strengthens in the short term ]
A lower AUD leading to A higher AUD gold = A higher and better financial outlook for Aussie gold miners
In recent times, AUD Gold peaked on Aug 6 so did the XGD.
Market participants however tend to track the USD Gold price more but it is the AUD Gold price that is relevant for Aussie Gold Stocks
AND
A lower AUD = Reduce purchasing power for Australians so therefore Aussie Gold Miners represent a good hedge.
Will we get a lower AUD? Most probably yes, because market expecting an RBA rate cut and Australia is heading for a very large budget deficit.
Are we heading below 70c next?
AUD/USD PRICE CHART: WEEKLY TIME FRAME (JUL 2018 TO SEP 2020)
