NEW YORK ( TheStreet) -- Gold prices fell again Wednesday after a dramatic 4% sell-off in the prior session as traders debated the metal's near-term prospects. Gold for February delivery settled down $5.10 to $1,373.17 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,385.20 and as low as $1,364 during Wednesday's session. The U.S. dollar index was rising 1.07% to $80.28 while the euro was retreating 1.12% to $1.31 vs. the dollar. The spot gold price was losing $8.20, according to Kitco's gold index. Gold prices had a painful day on Tuesday and the weakness continued Wednesday. In total, the yellow metal shed almost $50 as profit-takers and sell-stops deepened the sell-off. The trading has been driven by a stronger dollar and better-than-expected economic data moving investors away from commodities and into stocks as well as money managers and hedge funds locking in 2010 gains. As gold prices traded below the 50-day moving average of $1,377, sell-stops were activated, a move in which positions are sold to help traders lock in profits. Jeb Handwerger, editor fo GoldStockTrades.com, says that the sell-off will "reach a frenzy as the 50-day is broken." Handwerger is looking for reentry all the way down at $1,250. The pullback, however, didn't scare other ardent long-term gold traders away; it just raised the question of how and when to buy the precious metal. Scott Redler, chief strategic officer at T3Live.com, has been trading gold through the SPDR Gold Shares ( GLD) fund since 2008 and is trimming his position while he figures out the next technical move. "Gold is breaking the recent accelerated uptrend," says Redler. "I would recommend you getting down to tier one at best, if any. We need to figure out the composure moving forward." Redler is still a believer in higher gold prices for 2011 but is not sure at what level. Gold's next support is in the $1,320 area and then the 200-day moving average of $1,265 an ounce. Doug Kass, a contributor at RealMoney.com, thinks gold could be one of the worst-performing assets of the year despite the fact that prices popped 400% in the last decade. Big corrections in gold prices, however, are nothing new. There was one in early 2010 when spot gold prices sank almost $100 from their high in January to their low in February.