Inflation fears have helped send global spot gold prices to a record $US1457 ($NZ1889) in London, while silver hit a 31-year high of more than $US39 an ounce.
On the back of crude oil rising to a two-and-a-half-year high of more than $US122 a barrel and higher prices being paid in the trading of futures contracts for corn supplies, investors turned to gold because its historical standing as a hedge against inflation, nudging it up more than 1% to the record.
Craigs Investment Partners broker Chris Timms said several factors were influencing gold at present, not least the United States' central bank, the Federal Reserve, wanting to feed a further $US600 million into the ailing US economy.
Also fuelling the recent investor interest in gold is the impact of other multibillion-dollar government bailouts and sovereign debt issues around the world, the Middle East crisis and rising food commodity prices - collectively impacting negatively on investor sentiment.
Spot gold's price of $US1457.20 an ounce yesterday set a second record for the week, before the price settled back US90c.
Oil rose to $US122.22 a barrel, gaining for a fourth consecutive day to hit a two-and-a-half-year high as the conflict and unrest in North Africa and the Middle East more than offset China's latest interest rate hike.
Mr Timms said he expected after the Federal Reserve injected the $US600 million there would be some gold selling, driving the price down.
The gold and silver peaks got support from comments earlier in the week by the Federal Reserve's chairman, Ben Bernanke, who suggested he was committed to completing the $US600 billion stimulus programme as scheduled in June, to further prop up the US economy.
The rush to buy gold was also boosted by reports Portugal's leading banks had threatened to stop buying government debt bonds, following an investment downgrade by international ratings agency Moody's.
On Monday, Mr Bernanke said an increase in US inflation was being driven primarily by rising global commodity prices and was unlikely to persist, adding the Federal Reserve would monitor inflation closely.
"What it shows is that big money continues to believe gold will go higher ... because Bernanke wants to grow at any cost," said Axel Merk, portfolio manager of Merk Mutual Funds, which manages more than $US600 million of assets.
• Additional reporting Reuters, AP.
