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Gold goes to $1,000 by spring: Analyst

Talking Numbers

Gold's charts show something very ominous ahead, says one technical strategist.

There are happy investors. And then there are gold investors.

This year has been great for stocks; the S&P 500 is up nearly 27% so far in 2013. Flip that chart upside down and you'll basically see a gold chart. The yellow metal has lost 27% since the start of the year.

Let's put it this way: If you had $10,000 to invest on January 1, 2013, and you put it in gold instead of the market expecting the world to end by now, you are $5,400 behind where you would have been if you just put that money in the S&P 500.

(Read: Gold slides as investors await guidance)

If you're a gold bug hoping 2014 will be your lucky year, you're going to be just as sad as soon as spring rolls around, says Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson.

"We've now broken below the neckline of a head and shoulders continuation pattern which projects measured downside to $1,100 [per ounce]," says Ross on CNBC's Street Signs' Talking Numbers segment. "But, just when you think it couldn't get any worse, we bring up the longer-term weekly chart."

That chart shows something very ominous ahead for gold, says Ross.

"We now have the 50-week [moving average] crossing below the 200-week," says Ross. "Why is that important? The last time they crossed above, generating a buy signal, was over 11 years ago."

"I think we're destined for $1,000," says Ross, who sees that price target coming up by springtime. "That's not even a bold call at this point."

CNBC contributor Zachary Karabell, Head of Global Strategy for Envestnet and founder of River Twice Research, is also bleak on gold's prospects. He sees its only value at this point as a potential hedge in an absolute collapse of the markets.

(Watch: Just floating it out there: A ship tax haven)

"That to me is the only reason an individual or a financial planner would own gold at this point," says Karabell. "If people want to do that and feel that's an important small component, I suppose that's like buying any other insurance – it's worthless until it's worth something."

To see the rest of Ross' technical analysis and Karabell's fundamental analysis on gold, watch the video above.

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