Gold has gone nowhere fast over the past two weeks, trading in a mere $30 range. But Carter Worth, chief market technician at Sterne Agee, predicts that the metal is about to heat up—beating a path to the upside that leads gold prices up to $1,500 per ounce, which would be the highest level since April 2013.
When it comes to gold, "We remain new buyers and would be new buyers right here, in anticipation of the current 'bearish-to-bullish' reversal continuing and gaining urgency as new participants are drawn in," Worth wrote in a Monday note.
So what, specifically, does this technician see that he likes?
First of all, gold is up about 5 percent in a month, and this rise has been technically significant.
"The strength of the past few weeks represents a tentative break about the down trendline that's been in effect since mid-2012," he wrote, and illustrated with the below two-year chart of gold.