Gold investors need to carefully weigh their time horizons when playing the precious metal, Frank McGhee of Alliance Financial said Friday.
"We've certainly seen a continuation of the prior movement with gold falling off a cliff yesterday in reaction to the general forward-looking aspects of the market," he said, adding that it would likely continue to fall toward its "seasoned cost of production," around $1,050 to $1,100 per ounce.
"It'll take that much to get this market back to where we can find some stability and some long-term support."
On CNBC's "Fast Money," the head buyer of precious metals and gold bull said that one outlook wasn't positive.
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"I've been a bull forever and ever on this market," he said. "In the interim, though, what you have right now is the market starting to focus six months, eight months, a year out instead of focusing on the immediate short term."
McGhee said that when that occurs, gold becomes susceptible to economic data, the unemployment rate and talk of tapering easy money.
"That's when the market will take the type of correction we're seeing right now," he added.