A well known catchy cry in the Australian swimming Olympic heyday. And of course when gold has been going
through the roof. But life on the
Australian gold field has been a little subdued for some time yet.
Let’s look at some charts:
Firstly actual gold:
Click to Enlarge
Click to Enlarge
The daily chart says gold is just about at rest for the
moment but the weekly says gold has lower to go in the months ahead. Back to four year levels. Such a correction is not surprising – that is
the nature of markets. And by the time the correction is over we will have seen a 50% correction from the run up to the 2011 high from the 2008 low.
Healthy.
The local Australian gold index:
Click to Enlarge
Click to Enlarge
Whilst there are some differences in timing the picture of
XGD and XK SpotV are not too dissimilar.
Of course you would expect them to be co-incident.
And if we over lay the Australian dollar we see also some similarities:
Click to Enlarge
There will be money to be made on arbitrage between the two
indices in the coming year.
And for those that don’t want to arbitrage at least you
might buy a little more with your dollar if you travel overseas in the coming
summer holidays.
Enjoy the ride Tom Scollon
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