DUMP GOLD?

I want to make it perfectly clear that this is not my opinion, but I strive to be impartial in the articles I post on this blog.  If you want my opinion go here.

In an opinion article published on Forbes.com, Jan. 5, 2010, Keith McCullough, Chief Executive Officer of Research Edge said “Sell your gold. Buy some dollars.” It is his belief that the Fed will raise rates sooner than you think, and gold has peaked. He has been bullish on Gold since 2003. But on the date of this publication, Research Edge moved forward to a zero-percent position in their gold asset allocation. Their analysis showed immediate-term trade resistance for the price of gold at $1137.

The decade high for the gold was established on Dec. 2, 2009, and McCullough believes Gold may not top that high until the Fed stops raising interest rates. Even though the consensus is that the Fed is on hold until 2012, and they are long on gold. However, McCullough’s research team remains outside of the consensus. McCullough’s team thinks they have some credibility in reversing their own bearish U.S. dollar stand. It was the same team that wrote the dollar thesis earlier, last year.

McCullough stated that Research Edge did not make this prediction for the sake of being contrarian. They made the call because was their belief in the increasing probability of their being right. They even went as far as to sell their position in SPDR Gold Shares and buy the Powershares DB US Dollar Index Bullish in their virtual portfolio. Both of these moves are confirm the same investment thesis. McCullough’s group says “Sell your gold. Buy some dollars, and start moving forward right now."
The rest of this article can be read here.