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Joe Terranova's Gold Trade

Lately one of the best ways to close in the black -- has been with gold. But this precious metal has come well off its highs. How should you play gold, now?

Gold prices slid to their lowest level in more than a week, after testing all time highs over $1,000 an ounce earlier this month.

Investors have been piling into gold since last October as the financial crisis escalated after the collapse of Lehman Brothers. Fear that the massive amount of money being pumped into the global economy could eventually result in spiraling inflation has been a key reason behind the buying.

However, there's growing speculation that gold may have crested and could possibly be on its way down. That thesis took hold after Federal Reserve Chairman Ben Bernanke said he had a strategy to keep inflation under control as the economy recovers.

What’s the trade?

FM trader Joe Terranova says to watch gold carefully at current levels. “Back in October we had a ceiling in gold around $930," he explains on CNBC’s Closing Bell. "Then we climbed to $1000 and now we’re back down to this critical level."

"$930 should act as support now," he says. “If it breaks below the gold game may be up but if it stays above then it remains in play.”

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