Our XGD Gold Index is consistently falling nearly day after day. Even when gold rises overnight. How many times have we been told that means our gold shares are predicting the gold price to fall.
Problem is there's a major spanner in the works of this simplistic view.
You see, the HUI Index of gold shares is rising most nights. It rose 1.5% last night while our XGD Gold Index, true to form, followed that up with a 1.5% decline today even though gold rose more in Aussie dollars than US dollars due to our declining dollar against the US dollar!
This must be very confusing to the simplistic view that gold shares predict the future price of gold. So are the HUI gold shares predicting a rising gold price while the Australian gold shares are predicting a falling gold price? lol
why is it so?
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