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Gold is doing something it hasn't in 20 years

Gold marked its 10th straight day of losses Wednesday, in the longest losing streak for the precious metal in almost 20 years. And some traders say the collapse isn't over, yet.

"Physical demand for gold in China is down 9 percent. Worldwide, demand for gold coins, gold bars down 17 percent this year. So you're not getting the buyers even though the price is going lower," said trader Anthony Grisanti on CNBC's "Futures Now."

From August to September 1996, gold fell 13 days in a row.

Gold watchers say one need only to look at the dollar to find the reason for gold's decline.

"Cash is king in the commodity world now," said RBC Capital Markets precious metal strategist George Gero, referring to the dollar. The dollar index is up 8 percent year-to-date. Since gold is priced in dollars, it tends to fall when the dollar rises. With inflation low and the dollar strong, Gero says gold will stay range-bound until there are signs of inflation.

"Higher U.S. interest rates continue to support an environment where 'gold yields nothing' for the investor," Gero wrote in an RBC report Wednesday.

But KKM Financial's Jeff Kilburg said the large selloff could prime the market for minor bounce-back.

"Sentiment changes so quickly. There's no rhyme or reason why the selling is so hard, but I think it will turn around," Kilburg said Wednesday. "I think it's time for a little bit of a relief rally."

The commodity fell as low as $1,080 on Wednesday, reaching new five-year lows. Gold is down 5 percent on the week and has lost 8 percent on the year. If gold were to finish the year at its current level, it would mark the first time it has posted three straight years of losses since 1996.

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