Is it time to short gold? That's the latest call from MacNeil Curry, head of global technical strategy at Bank of America Merrill Lynch, who says the yellow metal is poised to drop as much as 9 percent.
"First and foremost, we've been in a medium-term downtrend since peaking out back in March at about the $1,392 area. And price action since the beginning of April has done nothing to reverse that downtrend. All we've been doing is consolidating," Curry said on Tuesday's "Futures Now."
On top of that, "the intermarket picture has become more negative for gold. Specifically we've seen a breakout in the equity market, specifically the S&P 500, which suggests that investors are becoming less concerned about what's going on in Ukraine, and investors are becoming more confident about global growth, at least in the short term. And furthermore, you've seen also seen the dollar start to reverse on the topside," Curry said. "When you put that together in conjunction with the price action, all that says that the risk-reward is for gold to resume that downtrend that began in mid-March."
If stocks continue to strengthen, and the dollar gets stronger as well, investors are left with fewer reasons to own gold.
Curry's near-term target on gold is $1,215, but he says that $1,180 could be in the cards.
"We've been stuck in a year-long range between the $1,180 and $1,333 area about, so I think you could get a push down towards there, and a bounce subsequent. I don't think we're going to get much below these range lows, not at this stage."
$1,180 is the low that gold made back in June 2013, after it plunged as much as $170 in seven sessions.
—By CNBC's Alex Rosenberg.