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

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.


Trades to Watch

Trader Bios


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

Read more