Suddenly, is shining.
The precious metal has rallied more than 9 percent from its July low as Fed uncertainty has investors flocking to the safe-haven asset. The move is prompting one trader, who correctly called the gold selloff a few months ago, to now change his tune.
"I think the Fed could be on hold and the gold market could benefit from that substantially," Todd Gordon said Tuesday on CNBC's "Trading Nation."
Read More Fed's Tarullo: Rate hike likely tough this year
According to Gordon, recent weakness in the is just what gold needs to break out. "It looks like the dollar is heading back toward its September low," said the founder of TradingAnalysis.com and CNBC contributor. "All we need is confirmation from the dollar that it wants to break down and I think gold could get a push to the upside."
Looking at a chart of the , the ETF that tracks gold, Gordon noted that it has recently broken through downtrend resistance. For him, this is positive confirmation that the ETF could surpass its next barrier, the 200-day moving average, which comes in around $114. "If we see a break above $114, we should go up to [the next level of resistance] which comes in at $120." That's a potential 7 percent move from the current trading price around $111.85.
Read More The gold rally is 'doomed to fail': Strategist
To play for a continued rally in the gold market, Gordon bought a call spread. This is a bullish options strategy where a trader will buy a call and then sell a higher strike call to offset the cost. The goal is for the stock or ETF to rise to the strike that you are short.
Gordon purchased the November 112/114 call spread for 75 cents. "I'm targeting that first area of resistance at $114," he said. A move to $114 in the GLD would put the ETF at its highest level since mid-June and put the commodity on track to close its first positive year since 2012.
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