Gold prices extended gains in London today to hit a record $1,282.97 an ounce. The price later fell back to end at $1,274.
Gold had closed above $1,2800 an ounce in Hong Kong earlier, after breaking through the key barrier as traders snapped up the safe-haven asset.
Gold has marked up a series of record highs this week after the European Union warned that fears of a resurgent euro zone debt crisis were likely to stunt the region's economic growth prospects this year.
Analysts also said today that the US economy remained fragile despite a drop in the number of people claiming jobless benefits in the world's biggest economy.
The rise also came amid speculation that the US may revert to crisis-era spending measures to boost the country's economy as fears grow of a fresh slowdown there.
Analysts expect gold to break the $1,300 mark before the end of the year, although they said recent gains could be pared back as investors lock in profits.
