Moverover, looking at the medium-term, the Federal Reserve outlook will keep pressure on gold. The Fed has stated that higher interest rates are coming this year, and the rate hike diminish the appeal of a non-yield-paying asset like gold. Moreover, a stronger dollar would also weigh on the value of holding bullion.

“The ingredients you need for a recipe for higher gold prices are just not there today,” Walter “Bucky” Hellwig, senior vice president at BB&T Wealth Management, told Bloomberg. “Yellen’s statement that they’re going to probably raise rates by year-end implies a stronger dollar, which isn’t favorable for gold.”

Commodity traders who would like to hedge against a potential dip in gold prices could utilize inverse gold ETFs. For example, the ProShares UltraShort Gold (NYSEArca: GLL) provides a two times inverse, or -200%, daily performance of gold bullion. The Direxion Daily Gold Bear 3X Shares (NYSEArca: BARS) reflects the daily -300% daily performance of gold.

Alternatively, ETN options include the DB Gold Double Short ETN (NYSEArca: DZZ), which tries to generate the twice inverse, or -200%, return of the daily performance of gold, DB Gold Short ETN (NYSEArca: DGZ), which tries to reflect the inverse of gold price movements, and VelocityShares 3x Inverse Gold ETN (NYSEArca: DGLD), which tries to reflect the performance of three times the inverse, or -300%, daily performance.

SPDR Gold Shares

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

Max Chen contributed to this article.