Record oil prices have seen gold surge above the $760 mark, with tensions in the Middle East bringing crude prices above $85 per barrel for the first time ever.
Buoyed by safe haven buying and hedging against the new high in the oil price, gold broke through another psychological price barrier, before falling back below the $760 mark.
Stabilising at around $758 per ounce in late morning New York trading, investors in the precious metal will still be heartened by the indomitable rise of gold prices over the last month.
Tensions between Turkey and Kurdish rebels fuelled concerns of Middle East supply problems and a resultant winter oil shortage, leading prices of crude to soar above $85 per barrel, with some experts predicting a further rise into the 90s should supply tensions develop.
Analysts at Gold Investments told the Thomson Financial news service: "Safe haven buying is contributing to a further increase in gold prices with the new Turkish-Iraqi dimension to geopolitical instability in the Middle East."
Stock market uncertainty has unfolded around the recent hike in oil prices, with investors flocking to buy gold and sending spot prices soaring as inflationary concerns have made investment in other areas more bearish.