I'm not sure what this means but its worth a post and a go at...

I'm not sure what this means but its worth a post and a go at understanding anyhow - Forex Correlations Signal that EURUSD, AUDUSD Outlook to Depend on Gold Prices

http://www.actionforex.com/technical-analysis/technical-archives/forex-correlations-signal-that-eurusd,-audusd-outlook-to-depend-on-gold-prices-2008081155984/

our gold price is very much a currency play and it also seems that the world thinks AUD paper is gold/commodity backed currency

add relatively high AUD interest rates to that and as long as there is a demand for gold (we have a gold standard now folks I hope) and commodities (who knows with the "China story") ... then AUD/Ruddbank (as in Gov. guaranteed deposits) paper is not a bad investment I would have thought (lets forget about 'flation for the time being!)

so gold in AUD may not go anywhere too far as the currency continues to strengthen relative to others

but ..lets assume the US value of gold stays stable .... if commodities tank then the AUD tanks -which will give help the AUD nominal value of gold.... which is why holding gold bullion is such a great hedge for GFC2

so holding PMs may not be such a great investment as some think it is

....it just that everything else is going to be a totally hopeless investment if there is a doomsday scenario.

so whats the countdown ctindale! - you out there somewhere?