Gary:
The relationship between gold, valued in $AUS, and gold, valued in $US, is simply the inverse of the relationship between the two currencies --- ie the lower the $AUS, the higher is the gold price in $AUS, and vice versa.
In fact, it is very confusing and, indeed, misleading to look at the gold price in any currency other than $US and then to extrapolate that observation to the gold price as quoted in $US. Unfortunately, it is a technique which certain "goldbugs" love to employ as the basis of their argument that the "gold price" is rising.
For example, in SAfrica, where I live, as result of the massive depreciation of the local currency (Rand) there is, in fact, a "bull market" in gold --- but quoted in Rands. In fact, the SAf gold price, at +/- R1800, is at an historic high while, in $US, the POG is at an almost 20-year low, as you may know.
Nevertheless, if one lives and invests in the country where the depreciated currency exists one can participate in that "bull market". But, only if one lives there and does not have to change the local currency into some other. |
