Trading Nation

This chart shows that gold is closing in on a nasty level

Trading Nation: Gold hits 5-month high

Gold's rally doesn't mean investors should count on more gains.

That's according to Oppenheimer technician Ari Wald, who sees a limit on gold's run in the charts. While Wald isn't bearish on gold, he does see "more attractive opportunities in stocks."

Wald's chart shows that while gold did rally above its 200-day moving average, which he calls "support" at $1,250, there has been "resistance" at $1,350 dating to 2012. The $1,350 level has often been cited as a key psychological point for gold, which the metal surpassed briefly last summer before falling below again.

"That's really limited gold over the last few years," Wald said Monday on CNBC's "Power Lunch." "I'm not too sure if gold can push beyond that level just yet."

In other words, while investors have poured into the metal as of late, the gold trade may not break out above the $1,350 level that has acted as a ceiling over the past few years.

On Monday, gold rose as high as $1,297.40 per ounce, the highest level since early November. Early Tuesday, it retreated to $1,288.10.

Stacey Gilbert, head of derivative strategy at Susquehanna, believes that given recent geopolitical uncertainties and the "unwinding" of the Trump trade, gold is currently a sound investment.

"Unless we have shifts there, there's no reason to unwind any of the gold positions here," she said on "Power Lunch." "We like it as a hedge to a broader portfolio," given that negative geopolitical events that could hurt stocks should end up helping safe-haven gold.

However, Gilbert believes the best way to play gold at the moment is in the options market, rather than by buying it outright.

Gold is up about 12 percent year to date.