Global spot gold prices hit an international high of $US1275 ($NZ1739) per ounce on the London Metals Exchange, after faltering economic reports from Germany.
Investors turned to gold, a centuries-old safe haven and hedge against inflation, to push bullion briefly to $US1275 on the exchange.
Its previous high was $US1265 in June.
East Otago-based Oceana Gold shares resumed their stellar run yesterday, gaining another 25c to a record $5.25 on the back of being included in the influential Standard & Poor's ASX 200 index on the Australian exchange.
Craigs Investment Partners broker Peter McIntyre said the "new normal" for investors, to combat market volatility between years of stability, was to go to gold as a safe haven.
"Gold's investment qualities have become greater than during last century," he said, predicting that amid the volatility, gold would rise to $US1600 per ounce.
New Zealand Mint head bullion trader Mike O'Kane said investors were looking for a hedge that would hold its value, in the face of economic instability and fears of further financial crisis.
"There is still a lot of uncertainty and nervousness about financial markets and the need for further government bailouts.
This has caused the gold price to go through the roof, causing the biggest one-day gain in four months," he said in a statement yesterday.
Mr O'Kane said the issue for local investors is that in New Zealand dollar terms, the gold price "remains fairly static", because of the currency holding against the United States dollar.
In the recession-hit US, the rallying gold price in recent months has renewed interest in prospecting in its western states, where public lands are rich with deposits and small-scale operators are all but free from government regulation, Reuters has reported.
The price surge this week is also credited to increasing annual demand from the middle classes of India and China for jewellery.
Mining-stock shares have also seen a revival on the back of increasing Asian demand and spot prices.
