The yellow metal has struggled since topping out near $1,900 per ounce in 2011 and is nearing five-year lows. But unfortunately for the bulls, it doesn't appear that there is any support to keep the commodity from falling lower.
$1,180 per ounce was the previous low in gold, Tom Vitiello of Aurum Options Strategies, explained to TheStreet's Jill Malandrino. Many traders thought the metal would find support near that level and a bounce higher would ensue.
But gold prices didn't stop declining there. The metal declined to $1,161 per ounce before bouncing slightly higher.
If gold can rebound to $1,175 per ounce, then perhaps it can find support and begin to work its way higher, Vitiello said. But if the commodity cannot regain that threshold, then it'll likely continue "scraping the bottom" as it heads lower.
So what catalysts exist to propel the metal higher? According to Vitiello, higher interest rates or inflation will be like "kryptonite" for gold. If either of those move higher in the future, then gold prices should appreciate.
He also pointed out that the metal has been very highly correlated to the Japanese yen. The yen, which continues to weaken against the U.S. dollar, has been headed lower, as has gold.