Bargain hunters get ready to buy gold
As a horrible year for gold continues to get even worse, several traders say that we've just about reached the level where gold is good again. And as gold futures show even more weakness on Wednesday morning, several bears are just about ready to become buyers.
"The chart of gold still looks like it has more downside, and my near-term objective in December gold futures is $1,250," Jim Iuorio of TJM Institutional Services wrote to CNBC.com. "If that level gives way, I think we will sell to $1,200 rather quickly. But at that point, I would consider a long position."
(Read more: Gold extends losses ahead of Fed minutes)
Dennis Gartman, the editor and publisher of the Gartman Letter, has long been a fan of gold in yen terms, rather than in U.S. dollar terms (which just means selling Japanese yen to buy gold). But while he's not yet interested in owning gold outright, further declines could make him change his mind, he said Tuesday on CNBC's "Futures Now."
"What's it going to take for me to get bullish of gold in dollars? Probably another violent selloff on a Friday," Gartman said. "We've seen Friday after Friday after Friday where people just throw up their hands. Give me one $50 break on the downside in gold, and you might entice me into the market at that point."
As the metal has weakened, some traders who have been bearish all year have already changed their view.
"We were kind of bearish on gold," said Brian Stutland of the Stutland Volatility Group. "But the key indicator right now is the U.S. dollar. When the U.S. dollar strengthened, gold has sold off. But we have seen the U.S. dollar sell off a little bit in the last couple of days, and our model actually ticked up. And we became buyers of gold."
(Read more: After getting crushed, this sector could be golden)
Still, Stutland does not expect to see some gigantic move higher.
"I think the last couple days of a weakening dollar index pushes gold above $1,300," Stutland said.
Given that gold was trading close to $1,260 on Wednesday morning, that would represent only a 3 percent upside move.