The price of gold has crossed $1,900 per ounce mark for the first time on growing concerns about a slowdown in the global economy.
The precious metal rose 0.8% to $1,911.46 an ounce in early Asian trade.
Fears of a slowdown in the US and the debt crisis in Europe have spurred demand for gold which is seen as a safe investment in times of uncertainty.
Analysts said gold prices could rise even further.
"For the time being investors are happy looking at gold as safe haven in these troubled times, and will continue to do so until we see something positive and sustainable." said Darren Heathcote of Investec Australia.Dollar vs gold?
Analysts said demand for gold was also being driven by speculation that the US Federal Reserve may announce new stimulus measures in a bid to boost the economy.
Central bank governors from across the globe are scheduled to gather for their annual meeting at the Jackson Hole summit later this week.
There is growing speculation that Ben Bernanke, the governor of the US central bank, may announce fresh stimulus measures in his speech at the summit.
"The idea for QE2 was conceived during the Jackson Hole summit last year," Ong Yi-Ling of Phillip Futures told the BBC.
"So the markets are hoping similar measures could be announced at this year's speech and that is spurring demand for gold."
Colin Whitehead of Fat Prophets added "If they push through with more stimulus, gold could rise even further,"
He explained that a fresh stimulus package would mean that the US will have to print more money to boost liquidity in the markets, which in turn could see the US currency weaken further.
"The underlying driver of gold prices is the depreciating US dollar value," he said, "so the more money they print, the stronger gold gets."