As gold bounces back from its worst two-day sell-off in 30 years that spooked investors and upset market estimates, analysts remain divided on where gold prices are headed from here.
In the bear camp, Andrew Dale, Asia head of resources research at Macquarie Securities, told CNBC that gold doesn't appear to have much steam to go beyond $1,400 an ounce.
"The investment drivers for the metal have come under pressure and there's no reason right now to see any huge gains back to previous levels," Dale said, citing easing inflation, the strength of U.S. equity markets and outflows from exchange-traded funds as the major causes behind the weakness in gold.
The precious metal that hit a two-year low of $1,321 per ounce on Tuesday was trading 0.6 percent higher on Wednesday in Asian trade. It is still, however, down about 18 percent year to date and far away from its peak of $,1,920 reached in September 2011.