Gold prices may already have hit bottom for the year after declining for the past six months in a row—the longest streak of losses in nearly three decades.

Lower prices have contributed to a boost in global central-bank purchases of gold. Other signs of a potential bottom for the metal include recent consolidation in the metals mining sector, which can mark a turnaround for the market. Gold futures GCZ8, +0.47% fell 0.9% in September, and they haven’t posted a monthly gain since March. Year to date, prices have lost about 8%, settling at $1,202.90 on Wednesday.

“I do believe gold has either reached a floor or is pretty close to one,” says Jeff Wright, executive vice president of mineral exploration company GoldMining Inc. GLDLF, +2.52% noting that central-bank gold reserve purchases were the strongest in three years. The most active gold futures contract dropped to a settlement of $1,184 in mid-August, the lowest in 19 months.

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