Why you should short gold now: BofA technician

Is it time to short gold? That's the latest call from MacNeil Curry, head of global technical strategy at Bank of America Merrill Lynch, who says the yellow metal is poised to drop as much as 9 percent.

"First and foremost, we've been in a medium-term downtrend since peaking out back in March at about the $1,392 area. And price action since the beginning of April has done nothing to reverse that downtrend. All we've been doing is consolidating," Curry said on Tuesday's "Futures Now."

Read MoreGold ends $1 lower as investors digest grim US data

On top of that, "the intermarket picture has become more negative for gold. Specifically we've seen a breakout in the equity market, specifically the S&P 500, which suggests that investors are becoming less concerned about what's going on in Ukraine, and investors are becoming more confident about global growth, at least in the short term. And furthermore, you've seen also seen the dollar start to reverse on the topside," Curry said. "When you put that together in conjunction with the price action, all that says that the risk-reward is for gold to resume that downtrend that began in mid-March."

If stocks continue to strengthen, and the dollar gets stronger as well, investors are left with fewer reasons to own gold.

Selection of gold coins at London auction house.
Getty Images
Selection of gold coins at London auction house.

Curry's near-term target on gold is $1,215, but he says that $1,180 could be in the cards.

"We've been stuck in a year-long range between the $1,180 and $1,333 area about, so I think you could get a push down towards there, and a bounce subsequent. I don't think we're going to get much below these range lows, not at this stage."

Read MoreDennis Gartman: This could be 'the next big trade'

$1,180 is the low that gold made back in June 2013, after it plunged as much as $170 in seven sessions.

—By CNBC's Alex Rosenberg.

Watch "Futures Now" Tuesdays and Thursdays 1 p.m. ET exclusively on FuturesNow.CNBC.com!

Contact Futures Now

  • Showtimes

    Watch Futures Now Tuesdays & Thursdays 1p ET exclusively on cnbc.com!

Sponsor Links

  • CME Group brings buyers and sellers together through its CME Globex electronic trading platform and trading facilities in New York and Chicago.

  • Take your trading to the next level with a platform that lets you trade stocks, options, futures and forex all in one place with no platform or data with no trade minimums. Open an account with TD Ameritrade and get up to $600 cash.