NEW YORK (CNN/Money) -
The price of gold rose above $300 an ounce Wednesday, approaching a high hit in February and sparking a surge in gold-mining stocks.
Gold futures for June delivery hit a high of 304.30 an ounce Wednesday before settling at $303.30. On February 6, the price rose as high as $307.50 an ounce for gold futures for April delivery.
Gold stocks surged, continuing the strong performance they've been putting in this year. AngloGold (AU: Research, Estimates), Freeport-McMoRan Copper and Gold (FCX: Research, Estimates) and Durban Roodepoort Deep (DROOY: Research, Estimates) all rose sharply.
Analysts pointed to a variety of factors for the surge in gold's price. Jean-Marie Eveillard, president and portfolio manager at SoGen Funds, said that some Japanese individuals have been buying gold in the past three months as they worry about their nation's banking system. He also noted that legendary investor and Berkshire Hathaway (BRK.A: Research, Estimates) Chairman Warren Buffett has observed that demand has been exceeding supply.
JP Morgan's John Bridges says he questions how much of gold's rally is a psychological rally and how much of it is for real reasons.
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Bridges noted that gold has been volatile, and that volatility would normally lead to a pullback, but it hasn't yet. He thinks a retreat might occur after the price hits $310 an ounce.
And Geoff Stanley, senior precious metals analyst at BMO Nesbitt Burns, thinks the rally could last a few months. But Eveillard is skeptical about the rally persisting.
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