Investors are piling into gold, sending the precious metal to a six-year high on Tuesday, and analysts think the commodity has established a "base" to go even higher.

Gold futures hit a high of $1,442.9 on Tuesday, its highest level since May 2013 when it reached $1,444.9. Gold settled slightly higher $1,418.70.

The precious metal is up more than 9% this month, on pace for its best monthly performance since February 2016 when gold gained 10.57%.

"Bigger picture though, given the magnitude of the base, which has taken six years to form, we suspect we could even see a retest of the $1,921 record high," David Sneddon, global head of technical analysis at Credit Suisse, said in a note to clients Monday.

Sneddon said gold has established a multiyear base that could provide the platform for a "significant and long-lasting rally" for the precious metal.

Gold is breaking out after Federal Reserve Chairman Jerome Powell said last week it would "act as appropriate" to keep the current economic expansion going. Powell's dovish comments increased the odds of the Fed cutting rates in July.

The Fed's easier policy has also weakened the dollar. Again a basket of currencies, the dollar hit its lowest level since March on Monday.

"We have finally seen more conclusive signs of the USD starting to materially weaken," said Sneddon. "With the DXY removing pivotal support from its 200-day average to complete an important bearish 'wedge' reversal, which should provide a fresh and significant catalyst for Gold to extend its gains."