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Trader: Buy this stock on higher gold

Will the recent rally in precious metals mean a change in fortune for one beaten-up stock?

Gold is up nearly 6% in the last month while silver is up an astounding 18%. However, the two are both down significantly for the year. The yellow metal is off by almost 19% since the start of 2013 and silver is worth one quarter less than what it was in January.

Other metals having a good month are copper and platinum; they're both up 6%. For the year, they're down 9% and 3% respectively.

(Read: Gold settles lower; bond yields signal quick Fed tapering)

Meanwhile, one stock not having a good year either is Caterpillar. The Dow component is down 6% this year, with nearly one-third of that loss happening in the past month.

But, is a rise in metals a reason to reconsider the construction equipment-maker? Caterpillar machines are used in mines. So, if the value of what's mined is moving up, it should make it more worthwhile for a miner to buy a few excavators and put them to work on a marginal mine somewhere, right?

(Watch: Gartman still likes gold, but stumped on stocks)

Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, thinks gold and the metals can take Caterpillar up with them. Meanwhile, fellow contributor Enis Taner, Global Macro Editor at RiskReversal.com, says digging deeper with Caterpillar will cause investors to be concerned.

Who's right? Watch the video to see Ross and Taner analyze Caterpillar so you can decide for yourself.

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