The Rand/Gold relationship is a bit of a paradox. The SA economy is largely based on mining and resources and the Rand has been strong in the face of rising Gold. Now when Gold falls a bit the Rand weakens against the $USD.
We need to see Gold start to rise in all currencies and this will likely start to happen later this year IF the ECB lowers rates in an attempt to intervene in the Euro's strength against the $USD. Sooner or later it will dawn on people that all the Central Banks are attempting to inflate their respective economies out of recession. Hyperinflation?
This would be the next big move in Gold and the Gold shares. The markets are forward looking instruments so the charts will tell us. It will be interesting to see if Gold holds up to an ECB rate cut.
Gold in Euro
stockcharts.com[w,a]dacayyay[df][pd20,2!b200][vc60][iLa12,26,9!Lh14,3]&pref=G
Gold in SA Rand
stockcharts.com[w,a]dacayyay[df][pd20,2!b200][vc60][iLa12,26,9!Lh14,3]&pref=G
Gold in $CDN
stockcharts.com[w,a]dacayyay[df][pd20,2!b200][vc60][iLa12,26,9!Lh14,3]&pref=G
Gold in Yen
stockcharts.com[w,a]dacayyay[df][pd20,2!b200][vc60][iLa12,26,9!Lh14,3]&pref=G |
