Gold Surges To Multi-Year High On A 'Perfect Storm' Of Factors

The price of an ounce of gold continued to rise Wednesday morning and is now trading at its highest levels since 2014.

An ounce of gold for August delivery was trading at $1,358.70, while the most commonly used exchange-traded fund that tracks the price of gold, the SPDR Gold Trust (ETF) GLD was trading higher by 1.14 percent at $130.95, which is above its previous 52-week high of $129.58.

The SPDR Gold Trust ETF has now gained more than 2 percent over the past five days, nearly 9 percent over the past month and is higher by more than 27 percent since the start of 2016.

Related Link: Reasons Why This Gold Miners ETF Can Keep Soaring

The Wall Street Journal cited Bob Haberkorn, a senior market strategist at RJP Futures, said investor appetite for the commodity has surged as of late due to a "perfect storm" of factors.

Specifically, investors continue pouring money into investments and assets they consider to be a safe haven and the ongoing fallout from the Brexit voting results. Meanwhile, the European central Bank could be preparing a new stimulus package.

Investors are also attracted to gold, which can offer investors an equal or superior return to low-bond yields in the current low interest rate environment.

However, consensus of a continued rise in the price of gold isn't unanimously shared among analysts. The Wall Street Journal quoted analysts at Commerzbank who said in a research note that "there is now considerable correction potential" as the price of gold has risen too high and too quickly.

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Other Gold Names At Time Of Writing

• Market Vectors Gold Miners ETF GDX: Up 1.72 percent in Wednesday's pre-market session at $30.15.
• Randgold Resources Ltd. (ADR) GOLD: Up 1.94 percent at $124.85.
• Direxion Shares Exchange Traded Fund Trust NUGT: Up 4.83 percent at $161.20.
Barrick Gold Corporation (USA) ABX: Up 1.61 percent at $22.76.<