The allure of gold has returned in recent weeks on expectations of U.S. interest rate cuts in June. The bullion soared to a new high of above $2,100 an ounce on Mar 4, having risen 5.6% over the past month.

Given the optimism, investors have a long list of options to tap into the metal's rally. We have highlighted the five most popular options that are directly linked to the spot gold price or futures to gain exposure to the metal. These include SPDR Gold Trust ETF GLD, iShares Gold Trust IAU, SPDR Gold MiniShares Trust GLDM, Aberdeen Standard Physical Swiss Gold Shares ETF SGOL and iShares Gold Trust Micro IAUM. All these ETFs have a Zacks ETF Rank #3 (Hold).

Traditionally viewed as a safe haven during periods of economic uncertainty and low interest rates, gold's appeal has surged following a series of weak U.S. economic reports. The U.S. manufacturing sector recorded its 16th consecutive month of decline in February, while Michigan University's consumer confidence index dropped slightly last month. U.S. personal spending data also showed the weakest reading in three years (read: Gold ETFs Jump on Rising Hopes for June Rate Cuts).

The latest bouts of weak data have raised the bets that the Fed might lower interest rates as soon as June, propelling gold prices. According to the latest data from CME Group's FedWatch Tool, about 70% of U.S. investors expect the Fed to begin cutting interest rates in June, up from 58% just a week ago. Notably, gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity costs of holding non-yielding bullion and weaken the U.S. dollar.

Further, gold has been considered a store of wealth for investors. It is often used as a means of preserving wealth during times of financial and political uncertainty and usually does well when other asset classes struggle. As such, factors such as the forthcoming U.S. presidential election and conflicts in Ukraine and Gaza enhance gold's attractiveness to investors. Strong physical buying from central banks and investors in Asia has also been a pillar of support.

Moreover, hedge funds and money managers are actively seeking to place bullish bets on gold. Recent data from the Commodity Futures Trading Commission indicates a spike in net bullish positions on gold by hedge funds and money managers, marking a three-week high as of Feb 27. This shift in sentiment underscores the growing optimism among investors regarding gold's potential in the current economic climate.

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