Behind the Trade: Buy gold now, trader says

Gold prices jumped after the Federal Open Market Committee this week released dovish notes from its September meeting, and Brian Kelly of Brian Kelly Capital said that now is the time to buy.

Looking at the SPDR Gold Shares Trust exchange-traded fund, Kelly said, "Major, major support at $114.25. We've hit this level in 2014, 2013 and going all the way back to 2010 and 2011. We've hit those levels and bounced. We have now bounced again off the $114.25 level. That's after the FOMC talking about the dollar being too strong."

Kelly said to look and start taking profits at the $123 level, but he expects the ETF to head even higher than that.

Shares of GLD are down 7 percent over the past year.