Jeffrey Christian Believes Gold Will Reach Cyclical Peak Of $1,550, Then Drop

That's because of the crises currently afflicting the world. However, more investors are looking for a cyclical peak; should gold rise to that level, there'll be a fair bit of profit taking that will push the metal down.

"Gold prices were never as high as they are now prior to around August or September 2010...also, even in the face of all these economic crises, real economic growth is continuing in most parts of the world - including the United States and Europe."

As a result of this, he says, "you have any number of investors who will say that maybe gold prices are getting close to a cyclical peak or maybe even have passed it - I don't think it has passed it, it's probably coming in the next few weeks. A lot of investors are saying gold is looking top heavy and let's be honest - the world isn't collapsing, it's facing incredible problems, but it's been facing incredible problems for the last decade and we continue to muddle through and manage with these issues."

Another reason he expects a cyclical peak is because the shorters of April futures contracts will have to find physical metal, buy the contracts back or roll them over. These actions tend to boost the gold price. Also, seasonality figures in. Gold tends to be strong in April but pulls back in the summer.