The price of gold crossed the $1,900 per ounce mark for the first time, the state-run BBC reported Tuesday.
The price of the precious metal rose by one percent to $1,911.46 an ounce in early Asian trade.
Fears of a meltdown in US economy as well as an economic crisis in Europe have increased the demand for gold in global markets, leading to a rise in the price of gold.
This comes as analysts say that the price of the yellow metal could further increase.
They say that demand for gold has been increasing based on speculation that the US Federal Reserve may inject more fiat money into the market in an effort to boost the country’s economy.
They say that a new stimulus injection of liquidity into the market means that the United States will have to print more money and that the US dollar will further weaken.
“The underlying driver of gold prices is the depreciating US dollar value,” Colin Whitehead of Fat Prophets told the state-run BBC.
“So the more money they print, the stronger gold gets,” he added.