Steve Cucchiaro of Windhaven Investment Management, which was the eighth-largest holder of GLD, said Thursday what he saw as the "sell" signal in the precious metal ETF.
In July 2012, Windhaven began to reduce its gold position "as we saw investor behavioral factors in our model turn sharply negative," he said. "The idea that short-term speculators would begin to lose patience with the lack of new highs in gold, began to sell our overweight position in February."
On CNBC's "Fast Money," Cucchiaro said that GLD comprised 13 percent of one of its portfolios.
"We were maximum overweight gold for most of the last 10 years, going back to when Alan Greenspan drove interest rates below the rate of inflation after the tech stock bubble burst," he said.
Cucchiaro said he would consider re-entering the trade when gold reaches $1,300 per ounce.
"We think that the fundamentals could still be constructive," he added.
Cucchiaro also said that he would keep an eye out for the possibility of deflationary pressure, "and then the Fed might have to ramp up their QE, so it's too early to tell. But if they do start to minimize the QE ... then we might see the real interest rates start to come back into line, and then gold won't be attractive again for some time."
Trader disclosure: On May 9, 2013, 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 TREASURIES; Brian Kelly is long COPPER; Brian Kelly is long US DOLLAR; Brian Kelly is short YEN; Brian Kelly is short GOLD; Brian Kelly is short SILVER; Brian Kelly is short DAX; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long M; Karen Finerman is long FL; Karen Finerman is long FINL; Karen Finerman is short SPY; Karen Finerman is short MDY PUTS; Dan Nathan is long CSCO MAY 21 STRADDLE; Dan Nathan is long BBRY JUNE/JULY 14 PUT SPREAD; Dan Nathan is short XHB ; Dan Nathan is long JNJ MAY 85 PUTS; Dan Nathan is long SPY MAY 10TH WEEKLY 162.5 PUTS.
