Why this is the moment of truth for the gold trade

Gold has enjoyed a nice pop this week, as geopolitical tensions have helped push the yellow metal above the widely watched $1,300 level.

As the situations in Ukraine and Gaza have caused concern, traders have looked for safety in gold, even as the U.S. dollar has stayed strong.

But will the gold rush continue?

Mark Newton, chief technical analyst at Greywolf Execution Partners, says yes.

"The action just in the last few days is important," Newtonsaid. "Gold has broken out above a minor one-month downtrend, so getting above $1,300 does appear to be important."

Newton said August has historically been a good month to buy gold. He also believes bullion is starting to look technically attractive. "In the last year, it's been stabilizing," he said. "I would look to buy gold."

(Read: Gold ends up on technical buying as tensions rise)

In fact, Newton does own some gold, including gold ETFs (GLD and IAU), the gold miners ETF (GDX), and the silver ETF (SLV).

Gold could get up to its March highs in the upper $1,300s,Newtonsaid.

"It looks good to own in my opinion, based on short-term technicals, longer-term technicals, and based on seasonality," he said.

Gina Sanchez, founder of Chantico Global, hasn't been fond of gold for a while—but she is taking a wait-and-see approach to the metal.

"In order to buy gold, you have to believe, at least, that the economic recovery is not as on solid footing, as we believed it to be," said Sanchez, a CNBC contributor.

(Read: US claims tumble below 300K; 4-week average hits lowest since 2006)

Economic data releases later in August will determine gold's next move, according to Sanchez. "We need to see what is happening with the housing market and we need to see what's happening with the consumer in terms of the retail sales numbers," she said. "If, in fact, we're on a slower trajectory for growth, gold could actually be a very, very good buy for right now."

But if the economy shows signs of strong growth, that could push up interest rates, which would likely be bad for gold, she points out.

"So there's a lot of data that's going to determine whether or not this is a good trade," she said. "We're just at an inflection right now."

To see what's next for gold, with Newton on the technicals and Sanchez on the fundamentals, watch the video above.

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