Gold is on the verge of a record close as traders around the world wait for the most recent signal from the Federal Reserve.
The central bank has hinted at a gradual rise in interest rates as it seeks to raise inflation expectations and ease the global recession.
But some traders say gold is a safe haven asset and gold should be trading higher than its current price.
Key points: Gold’s rise on Wednesday marked its highest since January 2015, and it broke a 52-week high set in January 2015.
It has been trading above $US1,200 an ounce (1,849.8 grams) since February 18.
What is gold?
Gold is a metal with a melting point of about 870C (2,000F).
Its value has soared over the last 10 years as it has become a safe-haven investment.
Gold has been on the rise as the world grapples with an economic downturn, but it is not yet a widely traded asset.
There are two main ways to buy gold: through the banking system or through the financial market.
Gold is traded on the New York Mercantile Exchange (NYMEX).
The average price of gold is around $US400 an ounce.
The benchmark US dollar was trading around US85.50 cents on Wednesday, compared with around US92.30 cents on Monday.
What are the biggest risks in gold?
There are risks associated with buying gold, including the potential for it to fall in value.
The Federal Reserve is due to hold its next policy meeting on December 22, which could spark a gold rally.
That could cause prices to soar further.
A decline in interest in gold could lead to a further increase in gold’s price.
The Fed could also raise interest rates if it does not find ways to boost inflation.
The prospect of a gold bubble could also fuel speculation in the market that the central bank is running out of ammunition.
The market for gold has also been volatile.
There has been a sharp increase in price volatility in recent months.
Gold futures were trading near their highest since August 2015, after falling to below $US500 an ounce in February.
The rise in the price has been driven by the recent rise in global commodity prices, which have been volatile and caused many people to lose money.
Are gold prices too high?
The central banks monetary policies have helped to fuel the gold boom, but there is a downside to this, and that is that the price of physical gold has risen.
There is a lot of speculation about whether the Fed’s plans to raise interest rate are a mistake, and if it is too high.
It is not clear if this will have a significant impact on the gold price.
Gold prices are currently trading above the US$1,400 an oz (1.7 tonnes) that it hit in February 2017.
There was a time when prices were lower.
But as gold prices have surged, they have started to drop.
What happens if the Fed raises interest rates?
The Federal Government has not announced any new policy changes, so gold prices are not in a position to know whether the central banks plans are too high or too low.
It could, however, raise interest-rate policy later this year.
Gold also has been hit by a series of extreme weather events, including Typhoon Haiyan in the Philippines, a heatwave in Turkey, and wildfires in Northern Australia.
The recent rise of gold prices could be an example of when the market is more vulnerable to weather and other extreme events.
If a sudden fall in the prices of gold makes gold prices look too high, it could also cause investors to sell it.
But this is not the case, and the markets could still rise.
Gold could also become a bubble If gold prices fall, the gold market could be at risk.
It would take gold prices to the next level, but not too far.
Gold’s current price is a reflection of a price rally.
There have been significant price increases in the past, and gold prices would likely rise again as the current bull market in the world economy returns.
But it would not be the first time gold prices rose above their current level.
Gold started to rise in 2009, when the United States Federal Reserve began pumping more money into the world’s monetary system.
There were concerns about whether this money would work as well as it was intended, leading to gold prices soaring above $1,300 an ounce ($US1.2 million) in February 2009.
This boom lasted for about three years.
But then the bubble burst, with prices falling back to their previous level.