Jim Iurio's Gold Trade

Jim Iurio said on CNBC's Futures Now that gold is responding to the sell off in the two most important currency pairs, euro-dollar and dollar-yen. If the dollar continues to rally, Iurio thinks gold will have a difficult time.

Iurio is waiting for a small bounce in gold to set up a bearish trade, using futures. If gold jumps to $1,271, he is going to sell with a target on the downside at $1,246. He would place a stop loss at $1,286. He is not worried by inflation right now, but he has it on his radar.