Talking Numbers

The chart gets worse and worse for gold

The chart gets worse and worse for gold

Suddenly, traders can't get enough of gold.

After turning negative for 2014, gold has staged a fierce comeback, hitting a four-week high as the recent, volatile selloff in stocks has traders running for the safety of gold.

The precious metal is now up 2 percent on the year, so can we expect to see even more action in the gold market?

"I think there [are] some important – very interesting – fundamentals," said RBC Capital Market's precious metals strategist and gold guru George Gero.

According to Gero, there have been three main headwinds against gold: a strong dollar, a strong stock market and low interest rates. The three market dynamics, in Gero's opinion, are likely to soon reverse, and thus could provide a boost for bullion.

(Read: Gold slips as dollar firms, oil prices slide)

"What has supported a strong dollar has been a wonderful stock market and no need for gold because there hasn't been inflation on the horizon," he added.

But when it comes to the technicals, Richard Ross of Auerbach Grayson said the charts are setting up for a swift move down. "The backdrop for gold is quite weak and the price action is wholly uninspiring," Ross said. "I would use any of this recent strength to be a seller."

On a year-to-date chart of gold, Ross pointed out a bearish triple-bottom formation, where the stock hits a low, and then bounces higher. "Each of the bounces has ultimately resulted in a lower high, which gives you that downtrend," Ross said. "Resistance comes in multiple ways between $1,240 an ounce and $1,275 an ounce."

However, according to Ross, it's the longer-term chart that really paints the grim picture for gold. "You can see that pattern of lower highs and that triple bottom gives us a textbook bearish descending triangle," he added. "I think we break below that key support at around $1,180 and that will take us down to that magical $1,000 [an ounce] number," he said. "I think we could see a fast move down in gold just as we have seen in crude oil."

Check out the video above for the full discussion with Ross and Gero.

---Follow on Twitter @CNBCDiaz, @CNBCNumbers

Follow us on Twitter: @CNBCNumbers
Like us on Facebook: