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.
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 may see another bout of gold buying next week on inflation concerns.
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.
We should be going into a consolidation period and prices should be going lower from here.
Interest rates are up and that increases the cost to hold gold.
