Gold hits record high in Australian dollar terms

by Chris Becker

Yesterday’s flash crash on currency markets had another silver lining – the price of gold in AUD reached a new record high at over $1879AUD per ounce:

It’s been a near rocket ride since the equity slump, proving gold’s usefulness as a Minsky Metal in times of stress:

Although the daily chart is now quite oversold, those who love gold will surely be buying on the dips. Because who doesn’t love gold?

 

Comments

  1. From Feb 2016 https://www.abc.net.au/news/2016-02-16/gold-prices-rise-most-to-start-year-since-1980/7173670

    “Gold could not only reclaim $US1,800 to $US2,000 an ounce but actually move substantially higher,” said Jordan Eliseo.

    “I think we’re going to see a repeat of the 1970s, which would see gold prices move in today’s terms to at least $US3,000 an ounce and with downward pressure on the Australian dollar the Australian dollar gold price could go substantially higher.”

      • That’s why I posted it. It was gold to the moon in early 2016 and it did not eventuate. That was the last time the dollar was touching the 60s as well. Of course just because it didn’t happen then doesn’t mean it wont happen now. I will be watching Fed Reserve moves, I still expect them to stay on their current path.

      • AU$ gold won’t go up if it’s only the US$ strengthening.

        However, seems like lots of downside for the AU$ alone now.

  2. “..who doesn’t love gold?”

    Sadly there are many gold haters πŸ™

    The Kouk
    Michael Pascoe
    Guy Debelle
    Alan Kohler
    Ben Bernanke
    Rory Robertson
    Mark Cuban
    Mark Dow
    Warren Buffett
    Joe Weisenthal
    Jason Zweig
    Cullen Roche
    Barry Ritholtz

    I could keep going πŸ˜€

    • There was a good call to get into the gold miners a couple of years back, but HnH has been consistently bearish on the price of gold because he thinks there will be some liquidation event when the next financial crisis hits (and that will be the opportunity to buy as gold tanks with everything as it did in 2008). I think he’ll be wrong or maybe it does happen, but occurs when gold has already seen a substantial rise in USD (and the low in that event is higher than it is today).

      In US Dollars Gold is only around 50% higher (nominally) than it’s major peak in 1980… there aren’t too many assets which are that cheap considering the insane monetary policies run over the past decade.

      • AAA’s circling the bowl.
        China deflates imports.
        Things get difficult for the banks.
        Then the poo will oblige in a big way πŸ˜‰

  3. If there is a global issue, I think money will run back to the USD.

    I think we are seeing a short term gold rally on some perceivt USD weakness asa result of the belief that US IR rises are finished. If they are truly finished, then we wait for the economic data to come through, such that the cycle can finish.

    I don’t think it is gold’s time yet…for me, I will wait until the next global downturn, and then pick up plenty near the bottom.

    I’m a reformed gold bug, btw…

    My 2c

    • BurbWatcher, you normally make a lot of sense. The problem is that if you wait for the lagging economic data (employment, inflation etc.) to show signs of US economic weakness, you will miss major moves in certain assets (eg. gold) which are predicting (in my opinion) future US economic weakness and an easing fed (rate cuts and an end to QT).

      Those predicting US economic weakness maybe wrong, but the bond market is indicating that they are right.

      We could avoid a possible global issue if the fed eases monetary policy.

      • UrbanWastelandMEMBER

        Which I think they’ll talk about but not actually do until Trump is out of office

    • Good luck, hopefully you’re already holding enough that it doesn’t matter if you don’t get the opportunity to buy more (as the price keeps running).