The next move for gold prices may not please the bulls, who are likely betting for the return of stock market volatility boosting sentiment around the yellow metal.

"In the last four gold selloffs, greater than average volume occurred across the entire futures chain while front month gold prices held support -- this suggests new longs and accumulation in the lower $1300's," says Bank of America Merrill Lynch technical analyst Paul Ciana.

But Ciana is quick to toss some rain on the parade of the gold bugs.

"If gold remains supported here by greater than average volume then the trend should resume higher -- otherwise new longs may stop below $1300 leading to a sharp decline."

Gold prices are down slightly in 2018 despite the prospect of rising inflation. Top gold stocks have fared worse though, with Rangold Resources (GOLD) - Get Report down 18% this year and Freeport-McMoRan (FCX) - Get Report off by 7%.

The Federal Reserve's widely expected decision to raise interest rates on Wednesday could be the trigger to send gold prices sharply lower. 

"Normally, when the market goes from not pricing in rate hikes to suddenly pricing rate hikes, that's very bad news for gold," CME Group's executive director and senior economist Erik Norland told Kitco News' Daniela Cambone. Kitco News is TheStreet's go-to source for the latest on gold. 

Source: Bank of America Merrill Lynch