Gold traded near $1,700 per ounce as a bet against fiat currencies around the world, Drakon Capital’s Guy Adami told CNBC on Tuesday.

“I don’t think it has anything to do with fear. It has everything to do with what’s coming down the pipe,” he said on “Fast Money.”

The price action put gold near its six-month high, trading at $1,695 per ounce at 1:16 p.m. ET.

(Read More: Dennis Gartman Says Gold ‘Wants to Go Higher’)

“Again, I’ll say, although it’s painful on the down days, and there have been a number of them, I think gold is what’s going to win,” he added. “One day we’re all going to wake up, and the price of gold is going to be a lot higher than it is now. When I say a lot higher, I mean north of $2,000.”

Trader disclosure: On Sept. 4, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Stephen Weiss is long HK; Stephen Weiss is long QCOM; Stephen Weiss is short X; Stephen Weiss is short TCK; Stephen Weiss is short AKS; Stephen Weiss is short VALE; Stephen Weiss is short AAPL PUTS; Joe Terranova is long VRTS; Joe Terranova is long WFM; Joe Terranova is long AAPL; Joe Terranova is long CSTR; Joe Terranova is long CHKP; Joe Terranova is long EMC; Joe Terranova is long NXPI; Michael Murphy is long WFC; Michael Murphy is long TGT; Michael Murphy is long SDS; Michael Murphy is long JCI.

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