Since peaking at $1,900 per ounce in September 2011, the price of gold has dropped nearly 22%, to last Friday’s close of $1,483. Labeling himself an “inveterate contrarian,” John Stoltzfus, chief investment strategist at Oppenheimer, suggests that a near-term bounce might be in order.

Gold’s decline has been especially sharp recently, plunging from the $1,675 level in early February of this year. According to Stoltzfus, this weakness has been caused by a “powerful stock market rally, a strong dollar, the recent commitment of the Japanese government to a QE regimen, as well as investors’ disillusionment with the metal’s performance during the height of the Cyprus crisis and again now throughout the bellicose tirades of North Korea’s new dictator.” That is, investors expected a panicked flight to gold during recent highly-publicized crises; when that didn’t happen, selling picked up.

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