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Trading Gold Amidst Its All-Time High

Gold powered to settle at an all-time high above $1,400 an ounce Monday, extending its record-breaking rally to a third day, as safe-haven buying prompted by renewed budget problems in Ireland more than offset a sharp dollar bounce.

The precious metal has risen almost 6 percent since just before the Federal Reserve detailed its plans last Wednesday to buy $600 billion worth of Treasurys to revive the economy, but the Fed's actions also stoked inflation fears.

What's the Trade?

From the options market, "Fast Money" trader Pete Najarian noticed strong activity in the Feb. 40 and Feb. 46 calls of the Junior Gold Miners exchange-traded fund. He thinks the miners have room to run to the upside.

Brian Kelly, founder of Kanundrum Capital, also likes the GDXJ and recommends the Market Vectors Gold Miners ETF, too. He also suggests playing other metals, including palladium and platinum, through Stillwater Mining .

Copper has been the best trade so far, said Joe Terranova of Virtus Investment Partners. He suggests playing Freeport-McMoRan Copper & Gold .

Guy Adami, managing partner of Drakon Capital, also likes the metals. He is interested in the silver space and recommends Silver Wheaton .

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Trader disclosure: On November 8, 2010, the day this video was recorded, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian owns (BAC), (DD), (F), (GDXJ), (LVS) and (YHOO). Terranova owns (APA), (AAPL), (ARUN), (AXP), (C), (DIS), (GOOG), (GS), (FCX), (HES), (IBM), (ISRG), (MCD), (NKE), (OIH), (ORCL), (OXY), (PCP), (PEP), (PFE), (POT), (UPL) and (VRTS). Joe Terranova also owns (FCX), (FFIV) and (SLB) puts. Guy Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC) and (MSFT).

For Brian Kelly:
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (TIP)
Accounts managed by Kanundrum Capital own (JEF)
Accounts managed by Kanundrum Capital own (TD)
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own (CLF)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own (GPRE)
Accounts managed by Kanundrum Capital own (JJG)
Accounts managed by Kanundrum Capital own (HD)
Accounts managed by Kanundrum Capital own (PCL)
Accounts managed by Kanundrum Capital own (XHB)
Accounts managed by Kanundrum Capital own (FCX)
Accounts managed by Kanundrum Capital own (JO)
Accounts managed by Kanundrum Capital own (EWH)
Accounts managed by Kanundrum Capital own (MCP)
Accounts managed by Kanundrum Capital own (MOT)
Accounts managed by Kanundrum Capital own (HBC)
Accounts managed by Kanundrum Capital own (SWC)
Accounts managed by Kanundrum Capital own Euro
Accounts Managed By Kanundrum Capital own (POT) Calls
Accounts managed by Kanundrum Capital are short Japanese Yen

For Joe Terranova:
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CMS)
Virtus Investment Partners own more than 1% of (CSC)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (FCFS)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SOA)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (WMB)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DRYS)

For Guy Adami:
Adami’s wife works at Merck

STEPHEN WEISS
Weiss owns (DIS)
Weiss owns (FWLT)

RICH ILCYSZYN
***No Disclosures***

RON SHAH
***No Disclosures***

TIM BOYD
***No Disclosures***

MIKE KHOUW
Cantor Fitzgerald makes a market in (AAPL)
Cantor Fitzgerald makes a market in (AOL)
Cantor Fitzgerald makes a market in (BAC)
Cantor Fitzgerald makes a market in (BWA)
Cantor Fitzgerald makes a market in (C)
Cantor Fitzgerald makes a market in (CSCO)
Cantor Fitzgerald makes a market in (DISH)
Cantor Fitzgerald makes a market in (F)
Cantor Fitzgerald makes a market in (GOOG)
Cantor Fitzgerald makes a market in (HGSI)
Cantor Fitzgerald makes a market in (INFY)
Cantor Fitzgerald makes a market in (INTC)
Cantor Fitzgerald makes a market in (JDSU)
Cantor Fitzgerald makes a market in (JPM)
Cantor Fitzgerald makes a market in (LVS)
Cantor Fitzgerald makes a market in (MCD)
Cantor Fitzgerald makes a market in (MDRX)
Cantor Fitzgerald makes a market in (PCLN)
Cantor Fitzgerald makes a market in (RAX)
Cantor Fitzgerald makes a market in (YHOO)

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