What will it take for gold to come off recent highs? According to Peter Hug, global trading director at Kitco Metals Inc., "Gold at these levels looks rich."

Hug explained, "If you take the fundamental picture into perspective, you have the Fed raising rates, you have a relatively strong U.S. economy, you have a relatively strong U.S. dollar. In that type of scenario historically, gold has done poorly. Quite frankly the fact that gold is over $1,300 indicates to me that there's something underlying this market from a fear perspective."

Gold has held onto gains in the last 12 months, trading as high as about $1,375 in January. 

Gold at those levels is overvalued, Hug said. He submitted that gold ought to trade below $1,200 given the broader market landscape. Although it might not be accurately valued, its current levels suggest gold may go higher before it goes lower, Hug said at TheStreet's investor boot camp this month.

Hug added that North Korea and the Middle East remain important issues to watch as investors attempt to determine what could break gold out of its current price range. Geopolitical concerns represent market-moving developments for gold prices, Hug noted.