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Gold ‘A Really Questionable Rally’: Hedge Fund Pro

Monday, 10 Sep 2012 | 1:08 PM ET

Investors shouldn’t necessarily trust a bullish gold market, calling it “a fragile rally,” Anthony Lazzara of Lido Isle Advisors told CNBC on Monday.

“The problem is, is these rallies that are based on purely monetary policy around the world are very fragile rallies, and they cause a lot of volatility in the market. We could rally, we could see $1,800 and we could pull right back down,” he said on “Fast Money.”

'A Really Questionable Rally' in Gold: Hedge Fund Pro
Anthony Lazzara of Lido Isle Advisors prefers grain commodities, says gold bulls are riding a "fragile rally."

(Read More: Gold Now ‘Dominant Currency,’ Gartman Says)

“There are a lot of people who bought gold over the last few years, and have it buried in their basement. And now the question is: If we start to see an $1,800 handle on this gold, are these people going to go down, dig it up and start putting it on the market?

“It’s a really questionable rally, I think.”

(Read More: Gold ‘Going to Win,’ $2,000 Target: Guy Adami)

Lazzara, who said he preferred grain commodities corn and soybeans, nonetheless shared a near-term outlook.

“Short-term, I’d say $1,800. Long-term, I think we could see a big gold rally. Gold started in a rally 10 years ago, and this rally could last 20 years, total,” he said. “But right now, I think we see a short-term top around 1,800 and then we might see a pullback.”

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Trader disclosure: On Sept. 10, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long CVX; Stephanie Link is long AIG; Josh Brown is long AAPL; Josh Brown is long WFC; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long TLT; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long CVX; Josh Brown is long P; Steve Weiss is long AAPL CALLS; Steve Weiss is long AIG; Steve Weiss is long WLP; Steve Weiss is long QCOM; Steve Weiss is long AMTG; Steve Weiss is long CLNY; Steve Weiss is long M; Steve Weiss is long UGL; Steve Weiss is long MSFT; Steve Weiss is long HK; Steve Weiss is long LCC; Steve Weiss is long VZ; Steve Weiss is long T; Steve Weiss is long VOD; Steve Weiss is long TOT; Steve Weiss is short VALE; Steve Weiss is short AAPL Puts; Steve Grasso is long AET; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long F; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S;

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