Yeah, Gil-galad had it first before passing it onto Círdan, who then gave it to Gandalf when he arrived in Middle-earth.I mean technically he is around in this time, just not in Middle Earth (and not by that name.) But yeah it would be odd to have Gandalf show up in the second age given the whole point of his Order's mission was a reaction to how the second age ended.
Maybe the fire thing just has to do with someone using Narya? Or maybe there's a dragon involved somehow? Isn't Gil-galad supposed to have it at this point?
I don't remember the exact history of dragons offhand but I'm pretty sure they were more common in the Second Age (compared to the Third) so there's a chance we'll see one.