Wednesday marked the 10th session of losses for gold. Comex gold for August delivery was last around $1,093 an ounce.
While some analysts say gold may bounce back soon, Goldman's Jeffrey Currie, head of commodities research, suggested the yellow metal could trade below $1,000 an ounce.
Gold’s recent slide has put it at a trough last seen more than five years ago.
As Currie said in an interview with Bloomberg, “We think we are in a structural bear market, not only in gold, but
across the commodity complex, as the individual commodity stories are
reinforcing to one another, creating a negative feedback loop.”
His estimate is partly based on his take on the dollar.
With a more upbeat outlook on the greenback and with "debasement risk starting to fade, the demand to use gold as a diversifying asset against the U.S. dollar becomes less and less important,” Currie said.
Fawad Razaqzada, technical analyst at Forex.com, supported this view pouring more bearish comments:
Gold's short-term outlook “remains bleak,” he said. Options and futures market is much larger
than the physical market, and that’s driven prices lower, MarketWatch reported referring to Razaqzada. He also pointed at sentiment - a factor which is often forgotten.
“At the moment, sentiment is decidedly bearish on precious metals — rightly or wrongly, it doesn’t really matter for some traders,” the analyst added.
