Gold is losing its luster.

The metal has fallen 5 percent in the last three months as the U.S. dollar has gained ground, in turn depressing gold prices. The commodity hit a fresh 2018 low Wednesday.

Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management, told CNBC’s “Trading Nation” that the bottom is nowhere near in for gold. Here are his reasons why.

• Gold has fallen as U.S. interest rates and the U.S. dollar have risen meaningfully in recent months. The metal is typically a story about yield; rising interest rates tend to make gold (a nonyielding, dollar-denominated asset) less attractive.

• The benchmark 10-year yield‘s breach of the 3 percent level for the first time in four years fueled this move.

• Gold is usually more so a hedge or a speculative instrument, rather than an investment. At this point, if investors see bond yields rallying further, toward 3.25 percent, gold will likely continue its descent.

• The only thing to support gold here would be some kind of geopolitical event, which could spur investors flocking to gold. Without that kind of catalyst, gold is likely to see a move down to $1,200 per ounce, or 7 percent below current levels.

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