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Take Profits In Gold?

Gold prices were little changed on Monday with gains capped by a technically bearish picture in the short term.

"The momentum of gold is not so strong,” explains Shuji Sugata, "That's partly because, technically, people still expect a downside risk in the short term," he said.

That downside risk, stems from currency players anticipating more short-covering in the greenback in a holiday-shortened week. (Investors, who sold the U.S. currency for most of 2009, have been buying it back as the year-end nears.)

Strength in the dollar usually curbs gold's appeal as an alternative investment, making the precious metal more expensive for holders of other currencies.

What’s the trade?

I'm looking to buy gold but I can't be a buyer just yet, says Joe Terranova. On the way up institutional investors had been supporting the gold market. But now they are sellers, he explains.

That selling just creates too much resistance. I can’t be bullish until I see institutions become buyers again.


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Trader disclosure: On December 21st, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Seymour Owns (AAPL), (AA), (BAC), (ETFC), (INTC); Finerman Owns (AAPL), (GOOG); Finerman's Firm Owns (MSFT), (NDAQ), (SKS), (TGT), (WMT), (BDX), (BCR); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (TLT); Finerman's Firm Owns (BAC) Preferred, (BAC), (BAC) Call Spread; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm And Finerman Own (CVS); Finerman's Firm And Finerman Own (WFC) Preferred

For Tim Seymour
Seygem Asset Management Owns (CZZ)

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (UA)

For Mark Mahaney
Citi Employees Own (YHOO), (GOOG)
Citigroup Global Markets Or Affiliates Owns 1% Or More Of (YHOO), (PCLN), (NFLX), (AKAM)
Citigroup Global Markets Or Affiliates Expects To Receive/Seek Investment Banking Compensation from (EBAY) In Next 3 Months
(EBAY) Is Or In Past 12 Month Was An Investment Banking Client Of Citigroup Global Markets
(AMZN), (EBAY), (YHOO), (GOOG) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Securities-Related)
(AMZN), (EBAY), (YHOO), (GOOG), (EXPE) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Non-Securities-Related)
Citigroup Global Markets Is A Market Maker In (AMZN), (EBAY), (YHOO), (EXPE), (PCLN), (NFLX), (AKAM), (GOOG)
Citigroup Global markets And/Or Affiliates Has A Significant Financial Interest In Relation To (EBAY), (YHOO), (EXPE), (GOOG)
Citigroup Global Markets Or Affiliates Owns 2% Or More Of (YHOO)

For Gene Munster
Piper Jaffray Is A Market Maker In (AAPL), (GOOG), (YHOO), (AMZN), (EBAY)

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