Australian Gold Rose Amid Dollar Leverage Over Cross-Pair Currencies

  • May 13, 2019 AEST
  • Team Kalkine
Australian Gold Rose Amid Dollar Leverage Over Cross-Pair Currencies

Gold upside rally halted in the international market amid speculative buy in the U.S. dollar. The Gold plunged from the level of US$1289.48 (Day’s high on 10th May 2019) to the present level of US$1283.07 (as on 13th May 2019, GMT-4 2:37 AM).

The factor which exerted pressure on gold prices was majorly the substantial gain in dollar prices, which rose over the speculation of the market participants, on estimation that the United States is again going to enjoy the dominance in the trade market over China given the  recently escalated trade tiff between the significant economies of the globe.

However, some market participants believe that if the trade dispute is not resolved soon, it may hamper the overall global commodity markets amid weakness in Chinese Yuan due to impact of high tariff on the export from China, which in turn, could mark a less demand in China- the world’s largest primary base metal consumer.

In the recent event, the dollar prices inched up over the speculation, and Dollar Index surged from the level of 97.13 (Day’s low on 10th May 2019) to the present high of 97.35 (as on 13th May 2019, GMT-4 2:59 AM).

The rise in dollar prices exerted pressure on the cross-currency pairs and the other pairs relevant to the dollar fell, which in turn, supported the gold prices in the domestic market of falling currencies.

Australian Dollar (AUD) fell from the level of 0.7019USD per AUD (Day’s high on 10th May 2019) to the present level of 0.6974 USD per AUD (as on 13th May 2019, GMT-4 3:02 AM). The drop in the domestic currency in Australia supported the gold prices.

The Gold price in terms of Australian dollar improved, and the Australian dollar-denominated Gold Spot rose from the level of A$1829.93 (Day’s low on 10th May 2019) to the present high of A$1845.97 (as on 13th May 2019 AEST 5:08 PM).

 Other than the Australian dollar, the U.S. dollar expressed its dominance over other pairs as well in the global market, especially against the domestic currency of China, with which the United States is in bilateral disagreement over the trade.

The cross-currency pair USD/CNY is ablaze over the trade war, and the U.S dollar continued gaining its leverage over the Chinese yuan. The prices of Chinese yuan against USD rose from the level of 6.7325 yuan (Day’s low on 3rd May 2019) to the present level of 6.8629 (as on 13th May 2019 GMT-4 3:25 AM).

The traction in the U.S. dollar assisted by the catalysts provided by the U.S.-China trade war to the dollar prices exerted pressure on gold prices in the United States; however, the dominant effect of the U.S. dollar against cross pairs led the gold to rise in the domestic market of falling currencies such as Australia.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.


All pictures are copyright to their respective owner(s) does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK