Gold has been on a tear. The precious metal hit a six-year high earlier this week as investor appetite for risk-off assets following the Federal Reserve’s hints at a rate cut drove the price above $1,400.

Dave Nadig, managing Director of ETF.com, told Yahoo Finance’s “The Ticker” on Wednesday there are two big reasons for the recent rally: a “perfect storm of demand” and a lack of options in what is “admittedly a pretty toppy market.”

“We’ve still got Middle East unrest, and we’ve still got trade wars going on, so it’s fair to look for a place to park some cash,” Nadig said. “With the declining U.S. dollar, which is a direct result of the declining interest rates we’re all expecting, gold is looking pretty good.”

Nadig also noted central bank buying from Russia, China, and others, as well as a strong Indian wedding season in the first quarter, helped fuel safe-haven buying.

In terms of the best ways to play the rally in gold, Nadig favors exchange-traded funds that hold gold bullion or funds that invest in gold miners.

“The simplest way is to buy a fund that takes gold and just sticks it in a vault,” he said. Nadig’s picks are the SPDR Gold Trust (GLD), as well as the GraniteShares Gold Trust (BAR), a cheaper option.

He also sees opportunities in exchange-traded funds focused on mining stocks. “Miners are on fire lately, up almost 30% year to date after a terrible couple of years. A lot of people are looking at the miners to really just be leveraged on any continued rally that we see.”

His pick in the space is the VanEck Vectors Gold Miners ETF (GDX). But it’s important to note that this investment call comes with a warning. Nadig is quick to point out a caveat: “You’re getting the gold effect, and the global equity effect. So longer term, it can be problematic.”

Gold fell nearly 1% Wednesday, closing at $1,409.

Seana Smith is the anchor for The Ticker.

READ MORE:

• Lower rates will 'squeeze' regional banks: Former BB&T CEO

• US farmers face 'huge' impact from flooding

• Auto-parts retailers are ‘best positioned’ for second half of 2019: Wedbush analyst

• The US-China trade war is 'difficult to handicap' at this point

• The best way to invest during the trade dispute: Annandale's George Seay

• Escalating US-China trade tensions has ‘raised the stakes’ for both sides: Barclays

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn,YouTube, and reddit.