Gold Hits 4-Week High: Here's Why It Can Continue Rising

The price for an ounce of gold traded above the key $1,300 level for the first time since May 3. There are several reasons to attribute the run-up in gold prices, ranging from dovish Federal Reserve comments on interest rate hikes and a higher U.S. dollar.

Fears of a possible "yes" outcome to the Brexit vote has also driven gold prices higher.

As noted by CNBC's Phil Han, the German government's 10-year bond's recent dip into negative territory also pushed investors towards the precious commodity. Meanwhile, Japan's government 2, 5, and 10-year bonds have already been trading at a negative yield.

"All those reasons pushed gold to more than four-week highs with the potential for substantially higher prices," Han said.

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Han, citing a report by HSBC, suggested a confirmed "yes" outcome to the Brexit vote could send gold prices surging higher by more than 10 percent in a short space of time. The report also argued that if Britain remains within the European Union, gold is "well placed to withstand any repercussions."

Finally, Han pointed out that Jim Ricards, author of "The New Case for Gold," suggested that the price of gold could surge all the way to $10,000 an ounce.

"We should expect the next global financial panic soon," Rickards said on CNBC last week. "We have imploded twice in the last 16 years so get ready for the third one."

How To Play Gold

The price of SPDR Gold Trust (ETF) GLD was trading higher by more than 1 percent ahead of Thursday's open and is higher by more than 20 percent year-to-date. This exchange traded fund is designed to reflect the performance of the price of gold bullion.

Investors and traders looking for a leveraged exposure to gold should keep an eye on Direxion Daily Gold Miners Bull 3X ETF NUGT, an exchange traded fund that seeks a daily return of 300 percent of the performance of the NYSE Arca Gold Miners Index. The ETF was trading higher by more than 7 percent Thursday morning.

Similarly, the Direxion Daily Jr Gld Mnrs Bull 3X ETF JNUG, an ETF that seeks a daily return of 300 percent of the performance of the MVIS Global Junior Gold Miners Index. The ETF was trading higher by more than 8 percent ahead of Thursday's market open.