Gold Pullback Presents Opportunity in the Long Run: Pros

Gold bugs are getting squashed.

During Monday's session, the price of gold fell to a 4-1/2-month low to $1,556.61 an ounce, its lowest since December 30, 2011 before paring some of those losses.

For the past several months, gold has declined as growing turmoil in Europe sent investors into the safety of the US dollar.

A stronger dollar is bearish for gold as well as other commodities nominated in dollars because it becomes more expensive for investors using other currencies.

"Gold is under severe pressure. As long as the dollar is appreciating against the euro it will weigh on the price," says Daniel Briesemann, analyst at Commerzbank in a Retuers interview.

"I wouldn't be surprised if we test the December low of around $1,520 an ounce and if we don't stop there we could go below $1,500."

In the near near-term the forecast appears bearish.

However, if you have a long-term time horizon, the Fast Money pros consider the current weakness to be an opportunity.

"What I think we’re seeing right now is the decline squeezing some big players out of their positions,” says trader Guy Adami.

However, he sees the growing uncertainty and the 'race to debase' as two powerful bullish catalysts.

“A year from now, I expect gold will be trading north of $2000,” he says.

Trader Steve Grasso is also positioned for upside. “I’m long the GDX ,” he says, “and I’m not selling my position.”

Posted by CNBC's Lee Brodie

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Trader disclosure: On May 14, 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; Brian Kelly is long WFC; Brian Kelly is long USG ; Brian Kelly is long T; Brian Kelly is long VZ; Brian Kelly is short SWEDISH KRONE; Karen Finerman is short AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long RIMM; Karen Finerman is long HPQ; Karen Finerman is long GRPN put spread; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDX; Steve Grasso is long ASTM; Steve Grasso is long AVAV; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long NUAN; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA

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