Gold has regained its luster this year after a tumultuous 2015, manifested by a roughly 25% surge in its value in the first half. The yellow metal’s bull run is a function of a combination of factors, notably the U.S. Federal Reserve’s move to keep interest rates steady in its June meeting and strong tailwind from Britain’s historic decision to leave the European Union (EU).

The upward momentum for gold is expected to continue moving forward as the conditions for the metal’s recent gains remain very much at play.

Why Gold Is on Fire?

Gold prices catapulted to cross the $1,300 per troy ounce threshold last month (reaching as high as $1,358 an ounce) after Britain voted to exit the EU, sending global stock markets into a tailspin. The market-rattling move sparked as much as around 8% surge in the yellow metal’s price to trade at levels last seen in Jul 2014.

Outcome from the EU referendum, which saw the ‘Leave’ side winning 52% of the vote, fueled safe-haven buying as investors fret that ‘Brexit’ would bring political and financial instability to Europe and could have serious consequences for the global economy. The Brexit-induced chaos in the global markets spurred investors’ demand for safe havens, triggering a strong rally in gold prices.

Gold prices also traded near two-year high yesterday as spooked investors continued to seek the metal amid a turbulent global political environment and growing expectations that central banks around the world will step up monetary stimulus in the wake of Brexit.

The U.S. Federal Reserve’s dovish stance is another major factor behind the shiny metal’s upsurge this year. The Fed left benchmark interest rates steady (in the band of 0.25%-0.50%) last month citing a sharp drop in U.S. hiring in May that raised doubts about the strength of the labor market as well as the health of the U.S. economy.

The central bank gave no clues on timing of the next hike and stated that it needs a clearer economic picture before increasing rates again. A delay in raising interest rates elevates demand for gold, which produces no income but relies on price appreciation to lure investors.

Other factors that also contributed to gold’s upturn this year include volatility in equities, a weaker greenback, slowdown in China and introduction of negative interest rates by several of the world’s central banks.

The Momentum Likely to Continue

The intense market uncertainty brought forth by Brexit is expected to continue to drive investors’ appetite for safe-haven assets, particularly gold, in the coming days. Some analysts feel that gold’s northern march will continue and prices could even touch the $1,500 an ounce level later this year given the profound impact of Brexit on the global financial markets, macroeconomic uncertainties and concerns about global economic growth. Typically, gold gains from negative vibes in the economy and is considered a safe-haven amid economic and geopolitical tensions.

The current global economic uncertainties stirred up by Brexit is also likely to prompt the Fed to hold off on raising interest rates for now. A low interest rate environment augurs well for gold.

Gold prices should also find support from retail demand in the latter part of 2016, which is seasonally strong for top consumers like India and China. A good monsoon season in India will also bring the prospects for a bigger harvest, which in turn is expected to boost purchasing power of gold among farmers and support gold demand. The farming community accounts for bulk of gold purchases in India.

4 High Flying Gold Stocks

The spurt in gold prices has also led to a surge in the share prices of many gold miners this year. We’ve listed four gold-mining stocks which have gained more than 50% year to date. These stocks have also witnessed upward estimate revisions over the past few weeks.

Barrick Gold Corporation

Based in Toronto, Canada, Barrick Gold is the largest gold mining company in the world. The company has many advanced exploration and development projects located across five continents.

Barrick has seen its shares shoot up roughly 201% year to date. The Zacks Consensus Estimate has moved north over the past 60 days for 2016. The stock has expected earnings growth of around 64% for the current year.

Yamana Gold, Inc.     

Headquartered in Toronto, Canada, Yamana Gold engages in gold mining and related activities, including exploration, extraction, processing, and reclamation. The company has precious metal properties and land positions in the Americas.

This company has delivered a solid year to date return of 195%. Earnings estimate for 2016 has witnessed positive revisions over the last 60 days. The stock has expected earnings growth of around 224% for the current year.

IAMGOLD Corp. (IAG Quick QuoteIAG - Free Report)              

Toronto-based IAMGOLD is engaged in the exploration, development and operation of gold mining properties. It also explores for copper and silver. The company holds interests in four operating gold mines, as well as exploration and development projects located in Africa, South America and Canada.

This stock has gained roughly 215% year to date. Earnings estimate for the current year have witnessed positive revisions over the last 60 days. The company has expected earnings growth of around 66% for 2016.

B2Gold Corp. (BTG Quick QuoteBTG - Free Report)              

Vancouver, Canada-based B2Gold explores and develops mineral properties in Nicaragua, the Philippines, Namibia, Burkina Faso and Chile. The company primarily explores for gold, silver and copper.

B2Gold has seen its shares surge around 175% so far this year. Its earnings estimate for 2016 has witnessed upward revisions over the past 60 days. The stock has expected earnings growth of a whopping 800% for the current year.

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