I'm fairly new to ETF/ETC investing and I was hoping someone would be kind enough to explain how the FX conversion works for ETF Securities listed ETC - GOLD (ASX).
I understand this ETC follows the spot price of gold in AUD however as the base spot price of gold is in USD, then I am wondering how this affects the AUD price of the ETC?
For example, if the spot price of gold does not change however the AUD weakens against the USD from say 1.08 down to 0.95, would the AUD price of the ETC increase? Conversely, if the AUD strengthen against the greenback (again with no change to the actual spot price of gold), would the ETC decrease in value?
Thanks / Jason