Gold Price and non-US $ gold prices

Gold, Exchange Rates and the London Fixing
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch

This is a snippet from a recent issue of the Gold Forecaster with Subscriber-only partsexcluded.

The Gold Price and non-U.S. $ Gold prices

While the rise in the $ price of gold has been sound, without being spectacular [the rise of late has only been around 10% over the average of the last 18 months], it has barely moved in many currencies.

With South Africa, as one of the leading gold producer’s currencies, the Rand, the gold price has hardly moved, while gold investors there have steadily built up their holdings. In that period the Rand has strengthened from a low point of around R10: U.S. $1 [October 2008], to R7.4: $1, sucking out all the benefits of a $ rise in the gold price.