Where is gold going?

It is a question preoccupying a lot of the contrarian investment experts we publish daily at Contrarian Profits.

Earlier today, we published a bearish article on gold by Today’s Financial News editor J. Christoph Amberger. He says oil, copper, gold and other speculative assets that promised unlimited upside are now caught in “an accelerating downward spiral,” as funds liquidate losing positions.

Other investment newsletter writers disagree.

Lee Lowell in The Smart Profits Report says gold is extremely oversold right now and is likely to trend higher as the dollar rally fizzles out.

Eric Roseman in The Sovereign Society also remains bullish on gold’s prospects. He says a major correction in gold prices is coming. Like Lee, Eric doesn’t think the fundamentals of the US ecnomoy support a long-term dollar upswing.

Steve Sjuggerud, writing in DailyWealth today, takes more of a middle road.

Steve says you can explain at least half of gold’s fall by the nearly 10% rise in the dollar. And, like Lee and Eric, Steve reckons the dollar’s rise is a temporary phenomenon. 

He also says history shows gold has fallen as much as 50% before continuing a huge bull market and that helps put the recent 20% fall in perspective. And if  history is any guide “over the course of the next five years, gold could fall farther than you think… and then soar higher than you can imagine.”