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Update: Gold, Other Metals to Make Parabolic Move?

There are lots of reasons to feel skeptical of the market. Whether it’s the financial woes of Europe, the aftermath of the Japan quake or the unrest in the Mideast, there are plenty of exogenous events that could derail traders.

However, the Fast Money traders are always focused on what’s working and on Wednesday that was the red hot metal trade.

Looking at precious metals, Gold flirted with all-time highs while silver traded at 31-year highs.

Brian Kelly thinks the trade is quite clear. “Buy gold and silver right here,” he says.

Kelly likes gold partly due to word that demand from China could match demand from India. If you take that kind of supply / demand dynamic and combine it with the safe-haven appeal of precious metals Kelly thinks 'we have the recipe for a potentially parabolic move in these metals right now.'

Rich Ilczyszyn, Lind-Waldock Sr. Market Strategist seems to agree. Looking at silver he calls gains “an old fashioned breakout.” Ilczyszyn thinks silver may be heading to just below $40.

Steve Grasso suggests that Ilczyszyn’s price target may be conservative. “When the Silver Wheaton CEO was on (Fast Money) he told us that he wouldn’t hedge unless silver hit $50. If $50 is a pipedream, that suggests he thinks it could get to $40- $45,” says Grasso.

Patty Edwards is bullish metals as well. When asked if she had to commit fresh capital to the trade she says to go, “long silver, long gold and long platinum.”

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INDUSTRIAL METALS

Meanwhile, industrial metals also showed strength. Copper prices climbed sharply on Wednesday to their highest level in two weeks.

Rich Ilczyszyn explains that copper is now trading just above the 50-day moving average. "The feel is risk on," he says.

Tim Seymour is also bullish on industrial metals as a bet on strength in emerging markets. He suggests looking at Southern Copper or Newmont Mining which gives you exposure to both copper and gold, he says.

Steve Cortes can’t get on board. He reminds the desk that copper is flat on the year, which he thinks is a sign of slower growth in EM.

JJ Kinahan recommends keeping an eye on another metal, aluminum. “Alcoa was among the strongest Dow components on bets that it will benefit from metals going up,” he says.

Elsewhere, in commodities Guy Adami is bullish KSU as a beneficiary of increased demand in commodities broadly.



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Trader disclosure: On Mar. 23, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; JJ Kinahan is Long (AA), (C), (F), (CCJ), (GE), (MSFT), (WAG), (TBT) and (MOS). JJ Kinahan is short (XHB) and (SPY); Tim Seymour is long (AAPL); Tim Seymour is long (BAC); Tim Seymour is long (SBUX); Tim Seymour is long (TM); Tim Seymour’s firm is long (ANTO); Tim Seymour’s firm is long (NEM); Guy Adami owns (AGU); Guy Adami owns (C); Guy Adami owns (GS); Guy Adami owns (INTC); Guy Adami owns (BTU); Guy Adami owns (NUE); Guy Adami owns (MSFT); Steve Cortes is long (TM); Steve Cortes is long (GS); Steve Cortes is long (CSX); Steve Cortes is long (SDY); Steve Cortes is long (SO); Steve Cortes is long Crude Oil; Steve Cortes is short (F); Steve Cortes is short (BAC); Steve Cortes is short (UNP); Steve Cortes is short (SPY); Steve Cortes is short (DBA); Steve Cortes is short Natural Gas; Steve Cortes is short Wheat; Steve Cortes is short Soybeans; Steve Cortes is short Corn; Steve Cortes is short CAD/USD; Steve Cortes is short EUR/USD; Pete Najarian is long (AAPL); Pete Najarian is long (AAPL) call spreads; Pete Najarian is long (BAC) calls

BRIAN KELLY
Accounts managed by Kanundrum Capital own (GOD)
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own Silver
Accounts managed by Kanundrum Capital own Gold
Accounts managed by Kanundrum Capital own U.S. Treasury Bonds
Accounts managed by Kanundrum Capital own (EBAY)
Accounts managed by Kanundrum Capital own (PGH)
Accounts managed by Kanundrum Capital own (VLO)
Accounts managed by Kanundrum Capital own U.S. Dollar
Accounts managed by Kanundrum Capital own (NFLX) Puts
Accounts managed by Kanundrum Capital own Crude Oil
Accounts managed by Kanundrum Capital own (RTN)
Accounts managed by Kanundrum Capital are Short Yen

DOUG KASS
Doug Kass is short (RTH)

COLIN GILLIS
**No Disclosures**

LARRY HAVERTY
The Gabelli Global Multimedia Trust Owns (NFXL)
The Gabelli Global Multimedia Trust Owns (CBS)
The Gabelli Global Multimedia Trust Owns (VIA.B)
The Gabelli Global Multimedia Trust Owns (ERTS)
Larry Haverty is long (CBS)
Larry Haverty is long (VIA.B)

JED DORSHEIMER
Canaccord Genuity Inc. has received compensation from (LEDS) for investment banking services
Canaccord Genuity Inc. has received compensation from (RBCN) for investment banking services

MIKE KHOUW
Cantor Fitzgerald is a Market Maker in (RIMM)

PATTY EDWARDS
Edwards is Long (AAPL) for clients
Edwards is Long (AMZN) for clients
Edwards is Long (CCL) for clients
Edwards is Long (GIS) for clients
Edwards is Long (ORCL) for clients
Edwards is Long (MSFT) for clients
Edwards is Long (VZ) for clients
Edwards is Long (AZO) for clients

STEVEN GRASSO
Stuart Frankel & Co and it’s partners own (CSCO)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MSFT)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners own (UAL)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners are Short (QQQQ)
Stuart Frankel & Co and it’s partners are Short (AAPL)

Comcast Is The Parent Company Of CNBC
Comcast Is The Parent Company Of NBCUniversal
GE Owns 49% Of NBCUniversal
GE Owns 49% Of CNBC




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