Dan Denbow, portfolio manager for USAA's precious metal fund, told TheStreet's Joe Deaux gold doesn't really have a catalyst to push it higher, which is why it continues drifting lower.
He noted that gold sold off around tapering talks earlier this year, before rallying in late summer on the "no tapering" announcement from the Fed.
Prices of the yellow metal can head higher once the sentiment shifts, Denbow said. He added that commodity prices can change very rapidly and indicated demand has remained strong in Asia and India.
He also said confirmation from the Fed regarding when it would begin tapering and by how much could help gold prices stabilize.
Denbow concluded that even when the Fed does taper, it's still going to be buying a lot of bonds and that "global currency debasement will continue."
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.