Gold is hot again.

Gold rallied to just under $1,300 an ounce Tuesday as the metal continues to enjoy a good couple of weeks. I'm not sure it's ready to permanently break through the $1,300 resistance level, but I could see it rising to $1,305 or $1,310 before dropping back down.

Meanwhile, the SPDR Gold Shares(GLD) - Get Report has continued its climb that began in early May. 

Many pundits are positing that the recent U.K. terror attacks and geopolitical uncertainty in the Korean peninsula are major factors for this safe-haven move. I believe gold is also benefiting from expectations that the Federal Reserve will hike short-term rates at next week's Federal Open Market Committee meeting. The metal jumped after the past two or three Fed hikes, so I suspect some buyers are trying to anticipate a similar rally.

As this week progresses, we'll see the results of British parliamentary elections, as well as further guidance from European Central Bank chief Mario Draghi. All of that will set us up for the all-important FOMC next week.

I don't anticipate any major surprises from any of these events, so I think gold's steady rise will continue. I believe that gold is in a long-term bull market, and I think some people are just now recognizing that and trying to get in on early.

Of course, all bull markets must "climb a wall of worry" on the way to higher valuations. Still, I think the market fundamentals for gold's rise are solidly in place -- and that the path of least resistance is up.

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At the time of publication, Williams was long physical gold and his company sells the metal.