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NEW YORK (Scrap Monster): Any further corrections lower in gold may well be a buying opportunity, according to the Zurich based bank UBS.

The yellow metal, which fell to a one-month low Monday, has been underpinned overnight by a stronger euro.

"For sure, the overall attitude towards the yellow metal remains positive looking out over the months ahead, but hesitancy to express that view in the near term is becoming an obstacle," said UBS precious-metals strategist Edel Tully.

She continued that, "it feels like gold needs a healthy clean-out at this juncture. A further correction from here would ultimately be beneficial though, given the sharp run-up in prices since mid-October, the repeated failure to breach $1,800 and the degree of spec length.”

“In our view, a corrective phase would be a buying opportunity that should be taken advantage of, for given the market's show of resilience, these chances are likely to be brief and become increasingly hard to come by as we head into year-end," she added.

Some longs are showing impatience over the metal's inability to break above $1,800, yet "the downside has not really given way materially either. This highlights the strong foundation and fan base that gold has built up. There is a distinct lack of aggressive follow-through selling, and physical players are stepping in to help support the downside," she concluded.