By Jack Crooks, Editor of Exotic FX Alert
www.worldcurrencywatch.com 

Gold bugs call your office!

As gold goes so goes the dollar in the opposite direction?  That is what we’ve been seeing lately. Today, gold is sharply lower at the moment and trading below its 200-day and 28-day moving averages. Notice the classic lower highs and lower lows on the chart…

I continue to believe the markdown in growth out of China is key to the future path of gold. One thing to know about me: I have a basic agnostic gaze towards gold. I view gold primarily as a liquidity-driven risk appetite asset.

Whenever I write that, the gold-bugs tell me that gold is so much more. They tell me it’s a safe haven and a substitute for the ugly fiat currencies. And while I agree paper currencies are very ugly, I have to wonder:

How much more stimulus can governments possibly pump out and cheapen paper currency the world over? How much closer can we get to all out war in the Middle East? How much more dangerous can the Pakistan-India on-going quagmire become? How much have the probabilities increased for social unrest in China and the potential it has to destabilize all kinds of stuff?

I’m guessing things could get much worse, no doubt. But yikes! This is nasty stuff on the horizon that I can see taking shape. Yet the supposed supreme safe haven — gold — continues to fade while all this is happening.

Aren’t asset markets supposed to price in these expectations? Is anyone expecting these areas to improve anytime soon? Not that we’ve seen. Gold-bugs have gotten exactly what they have wanted and the yellow metal keeps fading.

So, gold bugs (and that includes you Dad if you are reading) it’s time to call your office!

Best Regards,
Jack

EDITOR’S NOTE: Jack may be shying away from gold this morning, but instead, he’s got his eye on a particular exotic currency that has the potential to hand his subscribers triple-digits in the next few weeks. This is the kind of timely advice that helped Jack grab five winning trades in a row last year – using an almost unheard of corner of the Forex market. Find out how he does it here.