Sorry to disagree this time, siameseparrot. If gold is down and the US dollar is up, chances are oil is down too as well as the Australian dollar. Australian gold companies sell in American dollars of course and receive their proceeds in Australian dollars. Australian companies are well placed with the price of gold being around the mid 900s. If the price of gold fell to $US650 and the dollar went down to US70c, gold would still be at $A928.50 and LGL and NCM would still be profitable. Emotion may smash their share price but there would be no logical reason for it. In any case I'm interested in a particular takeover target which is very tempting with the price of gold at $A940 odd and cash costs no more than mid $A300s. I'll stick with my position of being more interested in gold in Australian dollars!
