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Golden opportunity? How to trade the metal's rally

After gold prices spiked on Friday, CNBC "Fast Money" traders contended the metal could tear even higher.

Gold futures for December delivery closed $20.80 higher at $1,137.80 an ounce, a day after the Federal Reserve said it would maintain its near-zero interest rate policy. Trader Guy Adami said the "move makes sense" and the metal should continue its climb.

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Throughout the day Friday, the dollar reversed initial losses and gained against major currencies, but gold did not move with it. That "decoupling" should bode well for gold, Adami and trader Brian Kelly said.

Kelly added that a possible short squeeze could send gold above $1,300 per ounce. However, trader Tim Seymour said he would not believe in a rally until the metal broke through $1,160 an ounce.

Read MoreGold rally set to fizzle out: Expert

Trader Steve Grasso would play a possible rally through the Market Vectors Gold Miners ETF, which has fallen more than 20 percent this year. The fund usually sees more exaggerated up or down moves than gold, which makes it enticing for people betting on a rally, he said.

Disclosures:

Tim Seymour

Tim Seymour is long AAPL, BAC, CLF, DIS, F, GE, GM, GOOGL, INTC, JPM, T, TWTR, Tim's firm is long BABA, BIDU, MCD, NKE, NOK, SBUX, YHOO.

Steve Grasso

Steve is long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, FIT, KBH, MJNA, MU, PFE, PHM, T, TWTR, GDX, firm is long GLD, AMZN His kids own EFA, EFG, EWJ, IJR, SPY.

Brian Kelly

Brian Kelly is long BBRY, GLD, Bitcoin, US Dollar, Crude Oil; he is short Yuan, British Pound, Euro.

Guy Adami

Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.