What is of more interest to me is what gold will do in Australian dollar terms. It's sitting at $A947 at present and our dollar moves closely with gold. Our dollar should decline next week if the Reserve Bank reduces rates. There is a lot of buying interest at $US800 as was evidenced by the World Gold Council report and this declines sharply as gold rises to $900 and above. My view for what it is worth is that gold will continue in the $US800-$850 range barring any new US financial collapses and it will continue around $A925-$A975 for the time being. I had thought it would go to $A1,000 but this may have to wait another month or two.
