This chart shows why gold is about to rise another 12 percent: Technician

Gold surged to a two-year high of $1,377 an ounce Wednesday, and one technician believes that the yellow metal will keep climbing.

Look at a long-term chart for gold, Piper Jaffray technical analyst Craig Johnson points out that while it's too soon to predict the metal will hit its 2011 high above $1,900, it will continue rallying given Wednesday's global environment.

"We have recently broken above some really important resistance levels at around $1,300 for gold, and maybe we can see it move back above $1,525," Johnson said Wednesday on CNBC's "Trading Nation." "There is a lot of uncertainty in the geopolitical arena at this point in time [and] there is uncertainty with negative rates happening."

"I'd still remain long on this trade at this time," he said.

Johnson grants that gold could pull back before climbing to $1,525 but such a reversal would give investors a better entry point into gold, with the technical analyst deeming $1,300 a possible level of support. Gold was down $11.40 to $1,355.90 an ounce midmorning Thursday.


Phillip Streible, senior market strategist at RJO Futures, also agrees that gold is a good choice for investors, especially given Wednesday's negative bond yields and the fact that investors need to "park [their money] in a safe investment vehicle."

However, he sees gold slipping before heading higher as it may have gotten a bit overheated due to recent market volatility.

"I think that it's a prudent choice right now, but the volatility might be just a little bit high here," said Streible. "So if you haven't gotten involved, you may be made for a little bit of a pullback back to support before you play the upside."

Other experts have taken the opposite stance on gold as of late, including Wells Fargo's head of real asset strategy, John LaForge. On Tuesday, LaForge told CNBC's "Trading Nation" that gold could fall as low as $1,050.

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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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