(Kitco News) – Traders are closing the books on gold’s worst daily performance in almost three years and some analysts are warning investors that there could be more selling during the next few days.

The gold market saw its worst one-day performance in almost three yearsTuesday, December gold futures settled the day at $1,269.70 an ounce, losing $43 during the session, this is the precious metal’s biggest daily loss since June 26, 2013. Silver settled the day at $17.775 an ounce, losing more than 93 cents on the day, its biggest one-day loss since June 7, 2012.

George Gero, managing director with RBC Wealth Management, warned that although Tuesday was a bad day for gold bulls, it is still unclear just how much damage has been done in the marketplace. He said that he expects to see more selling pressure over the next few days.

“We won’t know the full extent of this selloff until the dust settles in the next couple of days. I think we could start to see some margin call selling,” he said.

According to analysts, gold’s selloff was triggered by a rally in the U.S. dollar after Richmond Fed President Jeffrey Lacker said that there was a strong case to raise interest rates. He said that rates should be about 1.5% higher than current levels. However, Lacker is not currently a voting member of the Federal Open Market Committee.

Mike Dragosits, senior commodity trader at TD Securities, said that gold’s sharp selloff doesn’t make a lot of fundamental sense and was mostly triggered by stop-loss selling.

“If there was a sense that Friday’s nonfarm payrolls was going to be stronger then this selloff makes sense, but I haven’t seen any indication that is the case. We won’t really get a read on employment until Wednesday,” he said.

For now, Dragosits said that he is staying out the market’s way and maybe looking to jump in at gold’s 200-day moving average.

“I think $1,250 is the line in the sand that everyone is watching and will provide strong support for this market. If prices fall to this level in the next couple of days then I would be buying.”