Relative to the USD, the AUD has been in a long-term downtrend since 2012. Further, the AUD has only briefly spent time below 67 cents ad above 83 cents. It would be reasonable to assume that AUD valued between 67 – 83 cents would be fair value, and we agree.
Technical analysis also favours the bull case for Gold. When using a 10 year GOLD chart, a cup and handle pattern can be seen to be forming suggesting that over the near-term Gold will consolidate before reaching a new high or perhaps correcting short term to $1680, then reaching new highs. However, it is important that nothing is certain and can only be confirmed...