Gold Prices & Forex Flashcards
1
Q
what are the various ways gold can be traded?
A
- in physical form (jewellery)
- electronically (gold exchange traded funds)
- as stocks
- as currency (XAU)
2
Q
what currency is considered the global currency and exchange instrument for gold?
A
USD, US Dollars
3
Q
what are the two biggest gold mining nations?
A
- China
- Australia
4
Q
what happens to gold when the USD value decreases?
A
demand for gold increases
5
Q
what happens to Australia when there’s a higher demand for gold?
A
higher demand for gold favours exports and the trade balance for Australia
6
Q
what do higher exports do for the value of the AUD?
A
it strengthens the value of the Australian dollar
7
Q
what happens to AUD when the value of gold increases?
A
AUD value increases too
8
Q
what happens to swiss franc (CHF) when gold increases in value?
A
CHF also increases in value
