It's going to get much worse for gold: Technician

It's been another tough year for gold.

The precious metal has fallen 10 percent in 2015 and is tracking for its longest yearly losing streak since 1998. And according to one technician, the pain will continue heading into 2016.

"I think there's still downside here," Rich Ross said Monday on CNBC's "Trading Nation." Gold prices got a bid last week on the heels of a surprise stimulus package from European Central Bank President Mario Draghi as well as a strong jobs number on Friday. "However, we've seen those trends reverse, and I think ultimately gold is going to wilt over that pressure." Gold closed Monday's session down 1 percent.

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Looking at a chart of the GLD, the benchmark gold ETF, Ross explained why he thinks the technicals are setting up for a move below $100, which corresponds with $1,000 in the commodity price. "The key feature on the chart is this well-defined downward trending channel," he said. Ross identified key resistance in the GLD near the $104 level, which he believes the ETF will not be able to breach. "I think you want to take advantage of this downtrend and the recent bounce within it," added Evercore ISI's head of technical analysis and CNBC contributor.

Gold and the commodities space as a whole have been in a freefall this year as the dollar has ripped higher, a trend which Ross believes will continue. "The path of least resistance for gold is down," he added. "I would be a seller into any strength."

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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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