The gold price has increased by nearly 40 US Dollars in the past 24 hours.
The precious metal is currently valued at 1775 dollars an ounce.
Overnight the price of gold on the New York Mercantile Exchange increased by more than 38 dollars.
Cadiz Financial Services Group analyst Peter Major said the sharp rise is linked to the movements by the US Federal Reserve and the gold price will settle on Friday.
“The stock markets in the United States jumped by two percent as well. It is now the highest it’s been in five years. I don’t think it’s going to go up much more. I’ll be surprised if it goes up any more by next week.”
An expert said the gold price increase is unrelated to the mining protests in South Africa.
Strikes at several mines, including at Gold Fields's KDC west mine, have raised concerns that the mining sector, which contributes considerably to the country's economy, could lose hundreds of millions of rands.
(Edited by Tamsin Wort)