We had a large drop in Price of Gold today, with intraday low of approx. $1344 US
As I write this, it's down 17.50 at $1351 US, and down 14.21 at $1349 C
With the Canadian dollar rising against the US$, POG will go down in terms of the C$.
Scenario #1
$1.00C = $1.10US, ($1.00US = .90C)
POG = $2000US, with the C$ up against the US$ it would be worth $1800 C$
Scenario #2
$1.00C = .90 US, ($1.00US = $1.10C)
POG = $2000 US, with the C$ down against the US$ it would be worth $2200 C$
We need our dollar to DROP, and the US$ to go back up.
Is this likely to happen? I think the US$ will be strong for a short while, and then continue it's fall. This, is a negative for Canadian Mines.
Just my opinion..would appreciate any comments on this because I always have trouble getting my brain around the exchange rates.
Theoretically if the US$ starts dropping again then Price of Gold should rise. So in Canadian dollars we may end up flat on any strength in Gold.
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