Gold, which is trading at its lowest level in nearly 3 years, is in the midst of a long term bear market, and investors should look for an opportunity to exit positions in the precious metal, experts told CNBC.
"It's a long term bear market. If you bought into it today, don't expect it's going to do much. And if you own some and get a rally, get rid of it," said Dennis Gartman, editor of The Gartman Letter, a daily commentary on financial markets.
The precious metal plunged 4 percent late Wednesday, trading as low as $1,221.80 an ounce, as the rally in U.S. equities dampened demand for bullion as protection against economic uncertainty. Gold has fallen 23 percent in the second quarter and is currently on track for a record quarterly loss.
(Read More: Gartman: Three Reasons Why Gold Is Going Lower)
Yoni Jacobs, chief investment strategist at Chart Prophet Capital, an equity investment fund, says if the precious metal breaks through the $1,200 level, which is the next key support level and regarded as the production cost of gold, it could fall to $1,000.
"We're either going to find support at $1,200 or $1,000, at which point a lot of the bulls will be reinvigorated to buy gold. When that happens people will make a few bucks, but ultimately it will collapse," said Jacobs, who is also the author of Gold Bubble: Profiting From Gold's Impending Collapse.
"Gold is going to $700 in 3-5 years. The last gold bear market lasted 19 years. Such a thing is not out of the question," he added, referring to the long-term downtrend in gold prices from 1980-1999.
(Read More: $1,000 an Ounce? Gold's Decline Is Feeding on Itself)
The global inflationary environment will play a part in determining the length of the bear market, he said. The world's two largest economies, the U.S. and China, are currently facing downward price pressures.
Jacobs noted that sentiment towards the yellow metal has taken a severe beating with what he deems as the bursting of the gold bubble.