The precious metal, seen as a haven investment, reached an all-time pinnacle at $2,135.39 an ounce, before declining due to profit-taking.
Gold is benefitting also from the Israel-Hamas war, according to analysts.
"Concerns about the shaky global economic backdrop and the Israel-Hamas conflict have fuelled investor demand for safe-haven assets like gold," said Victoria Scholar, head of investment at Interactive Investor.
"Plus, expectations for Fed rate cuts next year have put downward pressure on the US dollar which is trading around three-month lows, adding to gold's attractiveness,” Scholar added.
Gold has been steadily rising since the eruption of the Israeli war in Palestine on 7 October, surging from around $1,900 per ounce to $2,069.01 on Monday.