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Was $1,800 the Top for Gold?

Gold eased on Thursday from the session's record highs after the CME Group raised margins on COMEX gold futures, leading some to ask whether $1,800 an ounce was the top for the precious metal?

Top traders Guy Adami and Steve Grasso don't think so.

"Considering the margin requirements increase I’d think gold would be down $50 not $15 – that could be telling you something," Adami said. He expects that as long as central banks continue to print money, people will continue buying gold, driving its price higher.

Grasso thinks its completely reasonable to expect gold to trade as high as $2000 an ounce. He cites the political circus underway in Washington.

"Does anyone really think lawmakers are going to come up with any credible cost cutting measures by November? That's why gold is moving higher and it could go a lot higher," he said.

Although Rich Ilczyszyn, senior market strategist with MF Global agrees long-term, if you're a trader with a short term time horizon he thinks the next move is lower. "After all, each run in gold lately has been followed by a 5-6 percent correction regardless of what's happened with margins," he noted. (RELATED: Gold Gains: Too Far, Too Fast?)

Steve Cortes is pretty much a gold bear and calls the gold trade "the most crowded trade I've ever seen." With gold hitting resistance at 1,800 level, he said, investors should sell now.




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Trader disclosure: On Aug 11, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Cortes owns (JNG); Cortes owns (PG); Cortes owns (WMT); Cortes owns (S&P); Cortes owns (GS); Cortes owns (MO); Cortes is short Silver; Cortes is short Gold; Cortes is short the Yen; Cortes is short the Treasuries; Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Steve Grasso owns (AMD); Steve Grasso owns (ASTM); Steve Grasso owns (BA); Steve Grasso owns (BAC); Steve Grasso owns (C); Steve Grasso owns (D); Steve Grasso owns (JPM); Steve Grasso owns (LIT); Steve Grasso owns (LPX); Steve Grasso owns (LVS); Steve Grasso owns (MAR); Steve Grasso owns (MHY); Steve Grasso owns (NDAQ); Steve Grasso owns (PFE); Steve Grasso owns (PRST); Steve Grasso owns (UAL); Steve Grasso owns (XHB); Steve Grasso owns (XLB); Steve Grasso owns (XLI)

For Steve Grasso
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For Richard Ilczyszyn
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