Gold is rising nearly 3 percent on Thursday, bringing the metal up to the highest intraday level since mid-April. And George Gero, precious metals strategist at RBC Capital Markets, pins the pop firmly on the Fed, which scoffed off inflation concerns and advocated staying dovish on Wednesday.

"Once we saw what the Fed was doing, and they were really right on course with the $10 billion monthly reduction in quantitative e... and they were on course on keeping rates low, and then you're seeing the ECB and the Bank of England and they're all keeping rates low, and then Draghi said they would do anything necessary to keep up with the economy recovering in Europe—this is all inflationary in the long run," Gero said on Thursday's "Futures Now."

Inflation tends to be good for gold, because as each dollar loses value, more of them are needed to buy the same ounce of gold—raising gold prices and making gold a hedge against inflation.

For Gero, the move has legs. "I don't think it's a one-day movement. I think such a sharp one-day movement is a signal. I think the institutions are making note of it. I think they've been underinvested," Gero said. "And now the funds are getting questions from fund holders—'Are we coming back into gold? Is the stock market going to pause?'"