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Is Gold Ready to Shine Again?

Gold bars
Tom Grill | Iconica | Getty Images
Gold bars

Gold has been having a rough ride lately. Here's what one technical analyst sees next.

It's been hard to know which way gold is headed, and plenty of currency strategists, who tend to treat gold as another currency, have been scratching their heads.

Todd Gordon, co-head of research and trading at Aspen Trading Group, isn't one of them.

Gordon says a consolidation pattern for gold began last August. Looking at technical patterns, he has identified the past year's prices as forming a flag pattern - a pause in gold's 10-year run rather than a new normal. He noted that China's on-target GDP report gave gold a lift, and he told CNBC's Melissa Leethat he thinks it makes sense to go long right around current 1,500, and look for a top around 2,000.

"I added to positions" on Friday, he says. "I think it's going to break."

Rebecca Patterson, a CNBC contributor, agrees that gold has been a frustrating trade, but says she is long gold and intends to stay that way. Patterson also notes that central banks have been diversifying their reserves, and that "the inflation fear is still alive and well," both of which should help gold. But she'd like to see more of a catalyst for the yellow metal. "The question is, am I just sitting here for a while or what's going to take me higher?" she asks.

You can watch the discussion on the video clip.

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