Gold is poised to take a serious hit in the weeks ahead, according to technically minded trader Todd Gordon, and he has a way to profit from the expected next move.
Gordon's analysis starts with the U.S. dollar. He believes it is set to break out of its 18-month range — specifically, breaking through resistance to the upside.
"You're starting to see some life in the dollar," Gordon said Friday on CNBC's "Trading Nation."
There is an inverse relationship between interest rates and the dollar and "as dollar moves up, commodities should move down," Gordon pointed out. He believes that if the dollar continues to move up, the "gold market is set to crumble."
The ETF that tracks gold futures, GLD, is sitting at the $125 mark, but Gordon sees it pushing down toward $120.