'Fast Money' Recap: Gold at $1400?

NEW YORK ( TheStreet) -- The markets sank again Wednesday as gold fell 5% and broke through its 200-day moving average.

The Dow Jones Industrial Average fell 131.46, or 1.10%, to 11,823.48. The S&P 500 dropped 13.91, or 1.31%, to 1211.82. The Nasdaq slid 39.96, or 1.55%, to 2539.31.

Joe Terranova said on CNBC's "Fast Money" TV show that the big decline in gold today is connected to the growing need in the euro region to raise capital by selling gold.

Guy Adami suggested there could be a bottom to the decline when a headline comes out saying a central bank is stepping in to buy gold.

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Tim Seymour characterized the decline in gold as credit deleveraging by EU banks and hedge funds. He said there could be more negative news on Thursday, with PMI numbers coming out across the eurozone. He also said investors should recognize that China will not be the final bidder for commodities and its easing will not lift commodities.

Brian Kelly expressed his concerns about the trouble global economic landscape, with the prospects of a recession in Europe, continued slowing in China and muddling along in the U.S.

Terranova said it would be a mistake to short the commodities. He said Freeport McMoRan ( FCX) did a good job of holding on. Another option might be Joy Global ( JOYG), which was decimated today and could be a takeover target, he said.

Seymour said he wouldn't be surprised to see the dollar continue to get stronger and test its March 2009 highs as soon as the end of the first quarter.

Brian Stutland said he didn't want to own commodity-related stocks because they have become too volatile.

What's the next stop for gold? Bill Strazzullo, chief market strategist for Bell Curve Trading, said the selling is not over, adding gold could trade down to $1,400 and "as deep as $1,100."

The technical trader said bears and sellers of gold have become more aggressive. Gold is now down more than 16% from its August highs.

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