Gold Could Plummet to $1,200: Pro

Gold Could Plummet to $1,200: Pro
Gold Could Plummet to $1,200: Pro   

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.

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Gold Bull Likes Another Precious Metal
Gold Bull Likes Another Precious Metal   

"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."

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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.