Exchange rates are reference points, not offers. This guide explains the forces behind the numbers you see.
What are Commodity Currencies?
Currencies whose national export revenue is dominated by raw materials are called 'commodity currencies'. Examples include the Canadian Dollar (CAD, tied to crude oil), the Australian Dollar (AUD, tied to iron ore and gold), and the South African Rand (ZAR, tied to precious metals).
When global commodity demand booms, capital flows into these countries, increasing demand for their domestic currencies.
Gold as a Fiat Currency Hedge
Gold has functioned as a monetary reserve for thousands of years. During periods of high global inflation or currency devaluation, central banks increase gold reserves to stabilize national balance sheets.