SGDM ETF

The U.S. post-election rally is dissipating quickly, giving way to more upside for gold. In particular, increasing tensions between Russia and Ukraine is spurring a flight to safe haven assets and reinvigorating gold prices again.

Economic data could put the Federal Reserve in a state of flux as it decides to cut interest rates while still receiving data that the economy is running hot. In the meantime, this maintains the bullish case for gold.

Gold is continuing its climb, breaching the $2,600 mark recently. It looks well on its way past $2,700.

Rate cut expectations continue to add fuel to gold's serendipitous rise this year as the precious metal pushes past the $2,600 mark. Gold is already up over 26% for the year, outpacing the S&P 500.

Gold rallying may have been unforeseen by some, but to the vast majority, it could still offer a bullish investment prospect especially with interest rate cuts looming. The precious metal is up over 20% for the year, surpassing the S&P 500's 19% gain.

The exit from gold-based ETFs last week was counterbalanced by safe haven demand amid heavy market volatility. When rates fall and the dollar declines, gold's rally could resume.

Gold's allure isn't relegated to just China demand and central bank buying. The World Gold Council, in an insights report, highlighted the growing demand from North America investors with an eye on the precious metal's fundamental benefits.

Market physics would eventually weigh down on gold as the precious metal has been unexpectedly rallying for much of the year. Despite prices heading lower, the start of summer could bring seasonal gold buying if history repeats itself.

The possibility of interest rate cuts and a weakening dollar could be contributing to gold's rise, but there are other factors driving its surge in value this year.