Experts predict that gold is likely to fall deeper in the short term and even test the support level at $1,800/ounce after falling below $1,900 for the first time since March. However, , an optimistic market analyst said that any short-term weakness should not change the long-term bullish outlook for the precious metal.
Ole Hansen, commodity strategist at Saxo Bank, said that, with the 10-year bond yield currently trading near a new 16-year high at 4.6% and the US Dollar Index holding at the highest level in nearly a year (above 106 points), gold's sell-off should have happened sooner. He added that, even after Wednesday's sell-off, gold prices remained relatively strong.