Meanwhile, COMEX gold futures were also down 1.1% Wednesday, trading around $1,126 per ounce. Ross believes that the next support level will be around $1,120, and if gold breaks below that level, bullion prices could continue to fall back to $1,100.

Dragging on the gold market, volatility is beginning to ease after markets try to recover from the swift correction – gold is seen as a safe-haven asset that provides a good store of wealth during tumultuous market conditions. Additionally, the U.S. dollar is beginning to strengthen against foreign currencies – gold is priced in USD, so further buying becomes pricier for foreign investors. [Safe-Haven Demand, Dovish Fed Help Gold ETFs Regain Ground]

“Gold does well when the dollar is weak and fear is high,” Ross said.”We’ve recently seen volatility come off, fear has subsided and dollar has firmed. All of which provides headwinds for gold and reinforces this key failure in the downtrend.”

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For more information on the gold market, visit our gold category.

Max Chen contributed to this article.