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Gold stocks set for heavy buying as AUD gold price hits all-time high

The gold price touched US$1,400 per ounce last night at 11pm, but Australians have woken up to see it trading just below US$1,450 per ounce (A$2,130 per ounce).

growth concept
This A$2,100+ per ounce gold price is exactly what the junior market needs

Yesterday it looked like the recent gold rally was finally cooling off with industry heavyweights such as Northern Star Resources Ltd (ASX:NST) down 7.23% yesterday.

Last night's sell-off in US equity indices wasn't all bad news as gold produced one of its biggest moves.

One of the more popular gold ETFs, the VanEck Vectors® Junior Gold Miners ETF (GDXJ®), also bounced back after slumping on the previous day.

USD gold price is good but AUD gold price is better

The move in gold overnight had investors worldwide cheering but no one as loudly as Australians.

We have one tailwind that makes this upward move even better, a declining currency.

In mid-July, the AUD was trying to strengthen reaching nearly US$0.71 but since then, it has gone down, and down, and down.

This morning it broke down through US$0.68, a level not breached since March 2009 (ignoring the infamous January 2019 flash crash).

Our weaker dollar means the US$1,450 per ounce gold price translates to A$2,130 per ounce gold price. 

This means if it's costing you A$2,000 per ounce to dig it out of the ground, you're still making money...so you can see what this means for ASX-listed producers.



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