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Gold showed it still has a little more shine left to it.

The precious metal bounced back to a three-week high after turning negative for the year. Investors have been flocking to bullion as the European economy and markets shake up.

However, the rally in bullion may be short-lived because of strength in another safe haven, the U.S. dollar.

Gina Sanchez, founder of Chantico Global, expects gold prices to trade relatively flat, if not weaken, because investors are also piling into the dollar. “While we are seeing some negative sentiment around economic growth, the fact of the matter is that the U.S. is still growing better relative to the rest of the developed markets,” she said. “That’s causing a lot of money to flow into the U.S. dollar, and as the U.S. dollar continues to strengthen, that is bad for gold.”

Though the U.S. dollar index, which prices the greenback against six developed market currencies, fell by 1 percent this week, it is up 8 percent since early July. Its recent 12-week rally was the longest since the dollar left the gold standard four decades ago.

“While on the one hand, maybe the recovery isn’t what we thought it would be,” Sanchez said. “On the other hand, it’s actually causing strength in the dollar. And I think that dollar strength is going to be more of an impact to gold than the other.”

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.Todd Gordon, founder of , agrees. “It’s trading perfectly inverse to the U.S. dollar,” he said. “As the dollar has pulled back, gold has rallied a little bit.”

But Gordon, a CNBC contributor, believes there’s a problem for gold in the technicals. He sees the metal trading in a downtrend channel that began over the summer. The recent rally is coming close to the top of the channel.

“Resistance should come in right about the ,240 level,” said Gordon, who is short calls on the gold trust (trading under the symbol GLD). “We’re targeting ,180, which is [the] multiyear low in the gold market as [the] dollar strengthens.”

To see the full discussion on gold, with Sanchez on the fundamentals and Gordon on the technicals, watch the above video.

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