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Bet on a bullion bounce?

Traders at the New York Mercantile Exchange.
Adam Jeffery | CNBC

Thursday, gold prices rose more than one percent to a four week high as investors plowed into the metal on more uncertainty about the timing of the next Fed rate hike.

Spot gold climbed 1.2 percent to $1,147.80 an ounce and was up 1.7 percent at $1,152.61.

U.S. gold for December delivery rose up $25.3 to end at $1,153.20 an ounce.

Gold is now up more than six percent from the most recent low reached July 16.

Read MoreGold rally could be similar to 1980

The safe haven asset had been under fire for months on speculation the Federal Reserve will be more aggressive in its policy stance.

Phillip Streible, senior market strategist, RJO Futures, told CNBC's "Power Lunch" on Thursday many of the big money managers are betting on a September hike which is why they've been short gold.

"These guys have been net short for weeks and a possible reallocation and actually flipping back to long. They have to make their money somehow, and they are busy shuffling their chips into different assets, playing the fear trade, so gold is a good bet right now."

Going forward, Streible there are plenty of reasons for traders to be on the defensive.

"Look to target the 200 day moving average for the December contract at 1189. Any close below 1115 would violate the bullish momentum and flip traders back short."

Year to date, gold is down more than three percent and is on track for its third consecutive year of losses.

Gold glitters today