Gold is ripping higher

Gold is ripping higher on Wednesday.

The precious metal gained about 1.14%, or $11 an ounce to as high as $1,120.80. After crossing the key $1,110 level earlier this week, gold has climbed to a three-week high.

Gold was part of the rout in commodities that accelerated in June and July. The metal flash-crashed July 19, and sank further after China disclosed lower-than-expected central bank stockpiles.

Several analysts put out very bearish outlooks for gold, with Morgan Stanley saying last month that China's announcement was "the latest in a string of bearish events."

And in a note Monday, the commodity team lowered its price outlook for gold by 8% for the second half of the year, and 1% by 2016. The team sees gold averaging $1,139 an ounce for this year versus $1,189 prior.

Over the last two days, however, the metal has caught a bit of a break from its slide.

Markets have been focused on China, where the central bank devalued the currency amid a slowing economy.

In a morning note to clients, Accendo Markets wrote, "Gold ($1114) benefitting from China's Yuan being allowed to devalue again, with the prospect of a currency war drawing risk averse investors into the safer haven of an alternative currency that sets its own price."

Here's a chart showing the move higher overnight and on Wednesday.

Finviz