Gold bulls have not had an easy time of it lately. The precious metal has lost ground in seven of the past nine weeks. And in Sunday evening trading, gold futures briefly hit an eight-month low.
The move comes on the back of a surge in the value of the dollar. The US Dollar Index, which compares the greenback to a basket of major currencies, rallied to a 52-week high over the past month. And as each dollar becomes worth more, it takes fewer dollars to buy the same amount of gold, leading gold prices to drop.
But according to Carter Worth, chief market technician at Sterne Agee, the dollar is about the turn around—potentially leading the gold price to stage a serious rebound.
When it comes to the recent slide in gold prices, "we think the opportunity here is to take the other side of it," Worth said on CNBC's "Options Action" on Friday, when gold also hit an eight-month low. "We think the massive rally in the dollar is overdone, and you actually can catch a pop in gold."
To make his point, Worth starts with a chart of the U.S. Dollar Index.