Scaramucci said that an evacuation pattern has emerged after the momentum cracked.
Gold traded at $1,578.80 per ounce midday, down more than 5 percent.
A day after economist Dennis Gartman sold his personal gold holdings, trader Steve Cortes also ripped it as an investment.
“I expect gold to continue to go lower — $1,500 I think is nothing. I think it’s going to $1,000 eventually,” he said.
Cortes echoed an argument from his book, “Against the Herd: 7 Contrarian Investment Strategies You Should Follow.”
“Gold is based completely on perception. Unlike a bond that pays a yield, a stock that pays a dividend or a piece of property that pays rent, gold pays you nothing. So you are relying 100 percent on the perception of its value,” he said. “It’s the greater fool theory, leveraged.”
Cortes said that the only safe harbor in a global investment storm is the U.S. — its dollar and treasuries.
Trader Rich Ilczyszyn said he wasn’t buying the dollar rally yet, preferring a short euro play.
Ilczyszyn still saw opportunities in gold.
“I think you could almost play the market from the long or short side and make money short-term,” he said. “You have to de-lever or certainly work out a strategy to protect your downside risk.”
Looking at options, Jon Najarian said there was a big surge in volatility, with gold up 54 percent for the day.
“We might see a bit of a bounce as people take off some shorts, but overall the damage that’s done here is probably going to pressure gold lower,” he said.
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Trader disclosure: On Dec. 14, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Scaramucci is long AAPL; Scaramucci is long C; Scaramucci is long INTC; Scaramucci is long EBAY; P. Najarian is long AAPL; P. Najarian is long MSFT; P. Najarian is long INTC; P. Najarian is long YHOO; P. Najarian is long MOS; P. Najarian has long calls BAC; P. Najarian has long calls JPM; P. Najarian has long calls WFC; P. Najarian has long calls BRCM; P. Najarian has long calls JOY; P. Najarian has long calls ETFC; Cortes is long TSN; Cortes is long SVU; Cortes is short EUR; Cortes is short AUD; Cortes is short GBP; Cortes is short Crude; Cortes is short AAPL; Cortes is short DB; J. Najarian sold puts GLD; J. Najarian sold puts AAPL; J. Najarian is long CBOE; J. Najarian is long CME; J. Najarian is long CIGX; J. Najarian has long call spreads JPM; J. Najarian has long call spreads GS; J. Najarian has long call spreads V; J. Najarian has long call spreads PNC; J. Najarian has long call spreads DMND
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