I see the Australian dollar as a strong currency trading very cheaply. Australia is a commodity-based economy, so with stronger commodity prices the currency should do better. |
Interest rates are up and that increases the cost to hold gold. |
That's giving gold a little impetus today. Producers are still absorbing the higher costs, but once that gets passed down, that's going to drive inflation. |
The currency is doing better. People always expect the worst when these crises start. But as time goes by, people get more confident the situation isn't that bad. |
We don't know what the UN will do concerning Iran. |
We may see another bout of gold buying next week on inflation concerns. |
We should be going into a consolidation period and prices should be going lower from here. |