"With all the bears in the woods, everybody being bearish is probably the most enticing reason to start to pick at the market"

Gero said Monday's 2.2 percent selloff in gold was sparked by one large trade, rather than any sea change in the fundamentals.

"Somebody had to make the decision to be out of the market with that size trade, which distorted the markets," he said. "We will be going back in the next few months to basics."