Its rally may not be over yet, according to Boris Schlossberg, managing director of FX strategy at BK Asset Management.
"I guess gold is the real bitcoin," Schlossberg joked on CNBC's "Trading Nation" on Wednesday. "Ultimately I think what's happening is the market is taking implicit bets that inflation is starting to pick itself back up, and I think there's a really good reason why the market thinks so."
Schlossberg said stimulus from global central banks that has fueled a fiscal expansion is going to make its way into the economy and drive inflation higher. This, then, will encourage central banks to hold rates low.
"Central banks are still going to have to keep rates very, very low, because their first and foremost priority right now in a post-Covid world is to maintain momentum, to maintain expansion as much as possible," said Schlossberg. "So they'll suppress interest rates, inflation will go a little bit higher, and of course gold loves nothing more than real interest rates going lower and lower and lower."
He added that this environment is setting gold up to test its $1,920.30 all-time high set in 2011.
Craig Johnson, chief market technician at Piper Sandler, said the charts back up Schlossberg's bull case.
"This has been a 10-year base in the making. And as we're moving above this $1,800 level, there's zero question in my mind that we're going to trade up toward about $1,912," Johnson said during the same segment.
That marks 5% upside from current levels.
"The bigger the base, the bigger the move. And if you just measure the height of that base and stand it up, you could have a substantially higher price of gold in here as you start to break out even above that $1,912 level. ... If you don't have gold, it looks like you need to add a little slice to your portfolios," said Johnson.