Australian Dollar and Gold Pricesby InvestorGuide Staff
Australia, being the third-largest producer of gold, is clearly affected by the fortunes of gold prices - and so too is its currency. There is a correlation of .85 between the Australian dollar and gold prices. Therefore, gold price increases almost always strengthen the Australian dollar while decreases will weaken it relative to most other currencies. In a less direct way, the strength of the New Zealand dollar is also correlated with gold prices as well.