Why the bottom could be in for gold: Strategist

Here's something gold bugs have been waiting to hear for quite some time: Gold is up for the year.

Granted, there have been only two trading so far in 2014 but, it's something. The last time that could be said was in mid-February of 2013, when the yellow metal began its sad decline of nearly 28% for the year.

Jeff Tomasulo, managing partner at Belpointe Alternative Investments, believes $1,200 is a key level for gold. On CNBC's Street Signs' Talking Numbers segment, Tomasulo says gold may be bouncing a bit from that price.

(Read: Gold ends 1% higher with support from equities' weakness)

"What we've seen on a shorter-term chart over the last month that gold may have put in a double bottom," says Tomasulo. "It tried to break through that $1,200. It couldn't do it and now it's about 5% up from its lows."

However, portfolio manager John Stephenson of First Asset Investment Advisors says that gold is going down despite what its biggest fans may wish.

"Maybe it's put in a double bottom but it's going down," says Stephenson. "It's like anyone you were enamored with once and you were jilted by; any little hopeful sign you might cling to. But, it's going down."

Stephenson believes the rationale for holding gold is diminishing. "It serves no useful purpose," says Stephenson. "It's been acting as a fear gage over the last number of years and things are looking pretty good."

(Read: 1930s-style debt defaults likely, says IMF research)

Stephenson cites recent positive economic data such gains by the Case-Shiller index as a red flag for gold. Economic growth in the US coupled with a strengthening dollar are bearish for gold, says Stephenson.

"I think it's a great shorting opportunity," says Stephenson. "But, otherwise, you should avoid it."

To see more of Tomasulo and Stephenson on what's next for gold, watch the video above.

More from Talking Numbers:

Why higher interest rates might be good for stocks
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Why you should date Apple, not marry it: Portfolio manager

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