SAN FRANCISCO (MarketWatch) — The unlikely trio of the Australian dollar, the Canadian loonie and the South African rand have closely tracked gold in recent weeks, and with the precious metal expected to test new heights, the so-called proxy currencies may go along for the ride.

Gold GCM11 futures have jumped more than 10% to close at a record high of $1,458.50 an ounce on Wednesday from a 2011 low of $1,318.40 on Jan. 27. Read about gold’s record close

During the same period, the Australian dollar AUDUSD, +0.49% has climbed nearly 5% against the U.S. dollar to $1.04 from 99.40 cents in late January.

The Canadian loonie and the South African rand likewise saw their fortunes rise. The U.S. dollar retreated 3.7% against its Canadian counterpart to 95.81 Canadian cents USDCAD, -0.52% from 99.44 in late January while the U.S. dollar’s buying power fell 5% to 6.688 rand USDZAR, -1.13% from 7.0436 rand.

“There is a strong correlation between gold and these currencies,” said Camilla Sutton, chief currency strategist at Scotia Capital.

The Canadian dollar has moved most in step with gold recently. With the value 1 being the benchmark indicating that a currency mimics every move made by gold, the correlation between gold and the Canadian loonie is 0.63. Between gold and the South African rand, it is 0.5 while it is 0.6 between gold and the Australian dollar pair, according to Sutton.

More broadly, these currencies have benefited as investors broadly embrace stocks, commodities and higher-yielding currencies — the so-called risk appetite that surged on a wave of fiscal and central-bank stimulus after the financial crisis.

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“The common factor for both the Australian dollar and the Canadian loonie is that they benefit when risk appetite returns,” said Mark Chandler, head of Canada fixed income & currency strategy, RBC Capital Markets.

The Aussie dollar, in particular, is expected to remain attractive as a proxy currency given its close links to gold and commodities prices.

“The fact that the currency likewise offers the highest short-term yield of any G-10 currency means that Australian dollar longs seem more attractive than the equivalent gold or low-yielding S&P 500 position,” David Rodriguez, a quantitative strategist at DailyFX.com, wrote in a note to investors.

For the Canadian loonie, it’s not so much about gold in itself but about oil. Gold only accounted for 3.5% of Canada’s total exports in 2010, according to Chandler.

But the country’s huge oil reserves mean that by default, it benefits when oil prices gain since higher energy prices trigger inflation worries, and gold is used as an inflation hedge.

Oil futures rose marginally on Wednesday in response to a weaker dollar and strong U.S. equities. Crude for May delivery CLK11 added 49 cents, or 0.5%, to $108.83 a barrel on the New York Mercantile Exchange. Read MarketWatch’s oil report

The term proxy currency partially owes its existence to the fact that currencies are much more approachable for the average investor than gold.

“Currencies are fabulously liquid, have depth and are more accessible,” Sutton said.

Meanwhile, gold’s ascent is likely to continue unabated in the short term, providing more upside momentum for proxy currencies. Some analysts are calling for $1,500 gold in a month.

The Australian dollar is expected to remain firm against the greenback, climbing to $1.06 in the second quarter and $1.08 in the fourth quarter, according to Sutton.

By June, the Canadian loonie is expected to strengthen further with the U.S. dollar buying 94 Canadian cents, according to Chandler.

The outlook for the rand is not as robust, however, with the U.S. dollar expected to buy 6.88 rand in the second quarter, marginally up from Wednesday’s level.