If this rally fails to beat the previous high, then the index will continue on lower levels for some time, leading to sideways trading for "many more months", he told CNBC.
As the Federal Reserve cut rates close to zero and hinted at boosting the money supply, gold has a strong argument for holding through this particular course of economic conditions, he said.
Locke predicted that the precious metal will move higher, and noted that if it breaks all-time highs, it is likely to continue to "well over $1,040, up towards $2,000 level probably within the next 12 months."
"We may do some more work going into the end of February, early March. There may be some backing and filling. But overall I would say the lows are in, and the next major level will be taking out the old bull-market highs," he said.
Wait Until January…then All Will Be Clear
"The trend is your friend" generally means buy into strength, follow positive momentum; don't sell into strength on the assumption that the strength will continue, Marc Rivalland, charting columnist at Investor's Chronicle, said Wednesday.