Gold hasn't done this since 1999

Gold bugs haven't had it this bad since the Clinton administration.

Bullion just notched its seventh straight week of losses, which is gold's longest weekly losing streak since 1999. And even though gold rose slightly Friday, a trader who relies heavily on the technicals believes the breakdown is about to get a lot worse.

"Gold is in a clear downtrend, but we've seen it consolidate of late," Andrew Keene said Friday on CNBC's "Trading Nation." Gold prices have been bouncing in a tight trading range of $1,080 on the low end and $1,100 on the high end for the past two weeks.

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And looking at a chart of the GLD ETF, which was trading Friday afternoon at $104.93, Keene noted that throughout much of 2015, it has shown a pattern of steep selling, followed by consolidation and further selling. "I don't think we are going to consolidate and reverse to the upside," he added. "I think the trend will continue lower to $100, which is the key psychological level in gold price of $1,000 an ounce."

Since hitting a high of $1,205.70 in June, gold has tumbled more than 9 percent on the one-two punch of a rising dollar and falling interest rates—two things that make gold less attractive. The continued selling has the options market betting on more losses.

"The options market is implying an $8 move in either direction by December," said Keene, founder of Keene on the Market. "If the GLD breaks $100 I think it's going to get HIT in a heartbeat, and we could see a measured move target down to $98."

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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