As consensus amongst analysts grows on the prospect of a progressively weaker USD and stronger gold price, the elephant in the room for locals is of course the AUD in those pairs. Last night gold rose again hitting US$1874 before settling at a still higher US$1870, up $70 in just the 2 weeks since it broke through US$1800. However in AUD terms last night actually saw gold drop nearly $5 to $2400 as the AUD strengthened against the weaker USD. Today we explore whether a dropping USD necessarily means a strengthening AUD.
