How to trade gold now

Gold is starting to shine a little.

Throughout November, gold has had a bit of a comeback – rising 2 percent to mark its third-straight weekly gains as investors have bought bullion in response to massive central bank easing. China's central bank cut its rates on Friday. Meanwhile, European Central Bank president Mario Draghi made comments signaling a willingness to use more monetary action to stimulate the eurozone economy. That has stocked inflation fears, which in turn have made gold more attractive.

With gold above $1,200, should investors consider adding it to their portfolios?

"You might get to the $1,250 - $1,275 level in the near term," said Daniel Stecich, senior vice president of economic research at Athena Advisor Services. "I don'tthink it will last up there because I think the inflation fears right now are probably a little bit overinflated."

On the technicals, gold's short-term prospects also look positive, according to Todd Gordon, founder of Looking at a 10-year logarithmic chart of gold, Gordon sees the metal as successfully holding a long-term support line despite its decline over the past three years.

A daily chart going back 18 months also shows one surprising bright spot: The "triple bottom" low of $1,180 gold tested four times since July. Though the final test of it in late-October/early-November failed, gold has since rebounded.

"That was supposed to hold as resistance," said Gordon, a CNBC contributor. "It didn't. We're up around $1,200. … I think the target would be about $1,250."

Like Stecich, Gordon believes the catalyst for higher gold is global central bank policies. He thinks the Federal Reserve may hold off raising U.S. interest rates, which could be bullish for gold.

"With what China did and with what Draghi is about to do…. How can the Fed go ahead and raise rates when the rest of the world is full-on liquidity in the system?" Gordon asked. "I think gold might actually have a chance to recover here. "

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