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Gold Could Plummet to $1,200: Pro

Tuesday, 4 Jun 2013 | 6:05 PM ET
Gold Could Plummet to $1,200: Pro
Unless the U.S. dollar rolls over, there's more downside in gold prices, Galtere founder Renee Haugerud says.

Gold prices could continue to slide to bottom around the $1,200-per-ounce level, Galtere founder and CIO Renee Haugerud said Tuesday.

"We think there's more downside on gold, and really it's the weight of positions and a correction," she said. "We still think the market is too long."

Gold dipped more than 1 percent, ending the day at $1,397.20 per ounce.

On CNBC's "Fast Money," Haugerud, a 20-year macro trader who runs the nearly $1 billion Galtere hedge fund, said that gold could drop to $1,200, "maybe $1,300," and then pause.

(Read More: Gold Bull Likes Other Precious Metals)

Gold Bull Likes Another Precious Metal
While he expects gold prices to rise in the long-term, Rick Rule of Sprott Asset Management names two other metals he also likes.

"With rates kept low you might have the dollar turned down again too," she added. "If you have a massive sell-off in the dollar, then you could see gold gain a little bit of its luster back."

Market technician Louise Yamada backed up what Haugerud saw.

"It certainly is in a bear market, no question about it," she said. "It broke a two-year support when it went under $1,539."

(Read More: 3 Gold Mining Stock Bargains)

Testing the low could mean a double-bottom, Yamada added, "but it's not a double-bottom until it rises through the May peak. And I think that there is the potential if it's having trouble at $1,400, there is the potential that it rolls over again."

Yamada also said that if it breaks the old low of $1,347, the next stop could be $1,300 or $1,200.

Trader disclosure: On June 4, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long DIS; Karen Finerman is long GNC; Karen Finerman is long RLGY; Karen Finerman is long RLGY CALLS; Karen Finerman is long M; Karen Finerman is long FL; Karen Finerman is short SPY; Karen Finerman is long MDY Puts; Erin Gibbs: No disclosures; ; Louise Yamada is long INTC; Louise Yamada is long MSFT; Louise Yamada is long KO; Louise Yamada is long VZ; Louise Yamada is long DXJ; Rebecca Patterson is long AAPL; Rebecca Patterson is long WFC; Rebecca Patterson is long JNJ; Rebecca Patterson is long GLD; Rebecca Patterson is long DG; (as of 6/3) Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long FB ; Stephanie Link is long EBAY; Stephanie Link is long F.

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