If earlier we've been studying the crude oil price link with the US Dollar, Dollar Canada and Norwegian Krona, this time we re going to learn forex with regard the commodity markets in particular the price of gold. If the oil is most concerned with the US Dollar, how about gold? With a commodity currency is concerned? Let's browse together!
Before the inception of money, gold has long been used as the comparison of the goods and the exchange rate for the needs of human beings. Its rust resistant, it is not easy to unravel, and the shapely certainly makes this one mine of material known as mine. Along with silver and Platinum, gold is known as the precious metals. Even though along with silver and Platinum, gold remains the preferred
. In the development of modern economics, was originally the central banks of many countries guarantee the exchange rate of its currency with gold. The meaning of this: as we know together that modern money are no longer made of gold (boro-boro, lha money 500 Silver Cook made of gold?) but instead of paper. Thus the actual intrinsic value (real value) could be said to be very cheap or virtually non-existent. Imagine for a few dozen years ago, where developing countries had recently become independent and the central bank was established. Issuing banknotes as exchange rates can open doubts society is it true the same valuable money with other stuff that does have a high intrinsic value. Well as how Lordship, the Government at that time generally dare to claim that paper money issued by them is guaranteed by the State-owned gold reserves. This means that if the community did not feel confident with money spent on central banks, they can just be exchanging them back with gold. Of course the practical side is reduced compared to passing trade paper money, but this is the way the world community first trust paper money each State as a valid exchange rate.
Walking with time and the formation of modern civilization, the central bank gradually no longer guarantees the paper money which they spend with gold and made gold precisely as one commodity trade as well as other stuff out there. This is because public confidence has been much better against his Government. Mere information, Bank Indonesia also kok guarantee Rp they spend with gold in the early independence of Indonesia
. Well, that's the history of gold. But whether thus gold is no longer valuable modern world? Of course not. Although not used as legal payment instrument again, gold remains the gold. Its value is recognized in the world as well as the honesty that is recognized everywhere we go in the world. Its main uses are as jewelry. Some electronic component also requires the use of a little gold due to the nature of the conductance and its power is much better compared to copper (Yes if not understand conductance does nothing, we will not use it in trading forex or gold).
In the days where the mining exchange traded commodities such as gold, is currently also one of the main commodities traded along with other commodities such as petroleum, cotton, wheat, milk and many others. In Indonesia it is indeed no commodity exchanges like this but the foreign community is already very familiar with commodity futures perdangangan
. Gold also traded at times other than being reserves or reserves and for some Government or big institutions. At the moment the exchange rate of the U.S. Dollar down, gold and oil usually being one of the targets of the product that are hunted to replace the Dollar plummets.
Thus, it can be said to be quite sexy gold this time. But what is the practical side? Thus, one of the largest gold producing countries in the world today is Australia. The Kangaroo country is indeed known as the country's exporters of mining goods. More than 50% of the products they export is commodities include precious metals. Look at the statistics below:
We can see together that mines and fuel is Australia's main export. Hence how large exports of gold Australia? Not great-very big kok, major exports for the year 2007 the non monetary gold Australia "just" amounted to 11.4 billion dollars Australia. Not great doesn't it?
hehehe. For many traders, particularly those that trade long term, trade Dollar Australia the same meaning with the gold trade. A similar movement is made in gold prices and the exchange rate of the country influence each other. Let's look at the example riilnya below:
We can see with that price AUDUSD very mrip with gold price also compared against the American Dollar (XAUUSD). Visible when gold was rising, in a few months to years ahead will affect the exchange rate of AUD against USD. Logically this does indeed allow export no impact because it was also against the currency exchange rates. But gradually will definitely be affected.
Now look back on the pictures above especially since 2002. We recall that the year 2000 forward is the period where internet use is spreading and also affects the way investors trade forex. The Internet has made everything progress very rapidly and in real time. It also has a direct bearing on the price of gold and the exchange rate against the AUDUSD. That's why when we see along the year 2002 to 2006 from the figure above, and XAUUSD AUDUSD is very similar to its movement, unlike previous years where gold moving much earlier than CURRENT DAILY.
OK Let's conclude our lesson: AUDUSD has similar movement patterns XAUUSD (gold prices)
From the practical side we can do action Buy AUDUSD if we know the price of gold rising drastically and most likely will still continue to climb. Of course in practice is not absolutely so. You still have to customize it with the technical analysis that you have and also your own trading style. Otherwise why would there be lessons technical analysis in Forex school we this? OK see you in the next lesson.
