With the headline price for Gold and many other commodities being the US Dollar, have you been stopping to consider how that very strength in the USD of late has impacted your local currency price ?
So where and how might this impact ?
Well firstly, locally domiciled miners that produce and sell gold in USD will be paid in local currency prices and could be enjoying a bit of a windfall against the otherwise side ways trending USD price of Gold.
The above chart (which is actually a customised Tradingview template we have created) shows the key AUD / GBP and USD prices of Gold alongside each other over the same time frame.
We can therefore see the benefits in the AUD and GBP price of Gold over that same sideways period.
Another tangent to consider in this space (and content for another post), is that according to the World Gold Council quarterly data many Central Banks have been stockpiling Gold over the last 12 - 24 months. It's also a bit of a coincidence that the BRICS movement has been ramping up discussions of its multi-commodity Trade Currency to provide an alternate to the petro-Dollar.
So bringing all that back into what we're anticipating to see in our upcoming Market Scanners is that we believe in the Australian Stock Exchange, with Australia being quite a prominent mining industry, that our Screener Results may in fact be dominated by mining companies going forward.
Watch this space, and be sure to subscribe to our daily ASX Market Screener updates on youtube