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.

The dollar rallied against the British pound and euro today, reports the BBC, “amid belief that the US economy may be in better health than other countries.”

The pound slumped to 17-month lows of $1.9225, while the euro hit five-month lows of $1.5195. Does this signal a turnaround for the buck?

Steve Sjuggerud in DailyWealth says it’s time to start betting against the euro – which is as expensive as it’s ever been. But Charles Delvalle in Investor’s Daily Edge argues that continued weakness in the US economy means the dollar will have a hard time finding traction for a long-term move.

There has been a lot of strong recommendations around biotech lately on Contrarian Profits.

Phase 1 Investor editor Rob Fannon recently wrote that biotech was one of the few market sectors to show positive returns as  many other stocks were getting hammered. He sees great values in the sector.

There’s a good reason for this strength. A struggling economy won’t hurt biotech and medical as much as, say, an automaker, retailer, or restaurant chain… And biotech is one of the few industries showing solid sales growth.

Today, the dollar hit its highest point in almost seven weeks versus the euro on speculation that the Fed will leave interest rates unchanged.

The euro fell as far as $1.5464, its lowest point since June 18.

The dollar’s climb could be a sign of things to come says DailyWealth editor Steve Sjuggerud.

In DailyWealth, Steve says that the euro is now “extremely overvalued” versus the euro – a full 50 percent overvalued, in fact.

If you don’t know the name Steve Leuthold yet, you should.  A few years ago, Leuthold made 450 percent gains by betting on commodities – by being bold enough to take a big position when nobody else dared to.

Leuthold also knows how to invest in stocks – his his Grizzly Short Fund (GRZZX) has been top of the stock funds over the last 12 months.

If you stick with Steve Leuthold’s advice, says Steve Sjuggerud in DailyWealth, you’re be well on your way to bumper profits…

Stocks are cheap. The question is: Are they getting cheaper? Steve Sjuggerud says it’s a strong possibility. He’s put together a table that shows how one generation becomes enamored with an investment trend and how that trend then goes bust. Right now commodities are the only game in town. This means we could be waiting a long time for stocks to pick-up…

Editor’s Note: If someone offers you tax-free interest on your investment, you’ll probably be interested. If the rate is higher than your existing taxable one, you’ll bite their hand off. Steve Sjuggerud says municipal bonds offer just that, relative to their 10-year Treasury counterparts. And if Barack Obama is elected, Steve thinks these muni bonds will soar…

“No Independence Day for gas prices,” says Chigago’s The Southern Star, which is predicting that half a million less people will leave the city over the holiday weekend thanks to high gas prices.

The AAA annual Fourth of July travel forecast says different, according to the The Washington Times. It says record gas prices and soaring airfares will deter few Americans from traveling over the holiday weekend.

DailyWealth editor Steve Sjuggerud says be skeptical about anyone who claims to know where the price of oil or gas is going.

Oil is skyrocketing… and Chevron (NYSE: CVX) and Exxon (NYSE: XOM) should be making outrageous profit margins. So let’s tax those “windfall” profits! But… hold on a minute…

Editor’s Note: DailyWealth’s Steve Sjuggerud thinks there is an extraordinary opportunity for investors in the bond market.