Gold sank as low as $1,271 on Tuesday, its lowest level since Aug. 9. And some strategists see the yellow metal falling further still.
"The fundamentals for gold in the long term are not very good. If you look at how gold tends to perform, it basically moves opposite interest rates or the dollar," said Gina Sanchez, CEO of Chantico Global.
As the market enters a rate normalization cycle, rates are likely going to rise, and with it the dollar, adding to the pressure on gold, she said Monday on CNBC's "Trading Nation."
Sanchez added that if geopolitical tensions heat up, the asset may see additional demand as a safe haven.
Though gold likely does not have meaningful downside from current levels, as there is a "very major basing attempt" in the works, equities appear much more attractive than gold at this time, said Ari Wald, head of technical analysis at Oppenheimer.
"We think there's a difference between base-building and a new uptrend, and as long as you're below $1,380 resistance, and this range-bound trading continues, our message to clients is that the more attractive bet is on equities right here," he said.
Furthermore, a prior downtrend in the charts has been reversed, Wald said, and the yellow metal will likely see a floor at the $1,200 level.
Gold futures were trading slightly lower, at $1,274 per troy ounce, on Tuesday. The metal has risen nearly 11 percent this year.