Gold prices could be headed sharply lower — Here's why

Gold prices have surged to impressive heights in recent weeks, defying recent market turmoil. However, Carley Garner, senior strategist and broker at DeCarley Trading and contributor at TheStreet Pro, is warning that the market may be entering unsustainable territory, and a pullback could be on the horizon. 

Related: Gold's price slipped; where does it go from here?

Full Video Transcript Below:

CARLEY GARNER: This is going to be kind of an unpopular opinion, but I do not think it's sustainable. I think the gold market is putting in a bit of a blow off top. Obviously we've seen some really impressive gains and we've gone parabolic here in the last couple of weeks. But I've seen this price action before this. We're as overbought today as we were in the summer of 2011. And we haven't been this overbought since. And in 2011 gold was at a situation where everybody wanted to be long gold. It was extremely popular. Popular there were inflows just like we're seeing today. There's massive inflows coming into ETFs gold futures. And everybody wants to own gold.

 But the reality is when everybody has the same idea, the markets tend to do the other the opposite. There's usually a rug pull. This is an 80 over 20 game 80% of speculators. And I'm not talking about investors I'm talking about speculators. People that are with hot money that are chasing prices. 80% of those people are generally wrong. 80% of analysts are generally wrong. It's a really tough game to predict what the future is going to hold. And if 80% which is roughly what our polling suggests are already bullish gold, the odds are we probably get some sort of surprise to the downside. So if you've made money in the gold market on the way up, please protect yourself, take some off the table, maybe even take all of it off the table and see what happens.