In the past the Australian dollar has strengthened against the US dollar reaching parity as gold has moved up. GOLD moving up with the AUD doesn't result in more profit for Australian gold mining companies.
However I've noticed over the last week or so gold has tracked up but the AUD has moved down. At the moment gold in Australian dollars is $1442. Last time when gold hit US $1391, gold in AUD was around $1380.
Its pretty certain in my mind gold is on the long term up trend. Question is, will the AUD track with it. With the US currency as the world's reserve currency thats doubtful in the medium term. If the AUD stays around these levels or at the very least move up but not the same rate as gold, gold valued in Australian dollars will trend up.
If we see gold valued at around $1600-$1700aud. This will seriously re-rate Australian gold mining companies. Share prices will boom.
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