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Gold’s surge to the highest in a year means an ounce of the metal buys 79 ounces of silver, near the high of 84.5 ounces in 2008 during the global financial crisis. As investors fret about financial market turmoil, a potential recession and the health of bank balance sheets, they’ve turned to gold as a haven. Silver hasn’t performed so well as about half of demand comes from industrial fabrication, which is threatened by a slowing economy.

Safe-haven assets shone across the board. U.S. 10-year Treasury yields hit their lowest since 2012 and the Japanese yen climbed to its highest in 15 months against the dollar, while money continued to flow into gold-backed exchange traded funds.

Total holdings of the top eight gold ETFs have risen by 3.8 million ounces so far this year, after three straight years of decline.

The risk-off sentiment has made gold the best performing commodity in 2016, ANZ said, while others predicted further gains.

"$1,300 would be possible if stocks don't stop falling," said Yuichi Ikemizu at Standard Bank in Tokyo.

Also helping gold was dovish comments from Federal Reserve Chair Janet Yellen, who stressed that the U.S. central bank was not on a "pre-set" path to return policy to "normal" amid a worsening meltdown in global stock markets.

Though Yellen said she still expects the Fed to gradually raise rates this year, federal funds rate futures have almost completely priced out the chance of a rate hike.

Jeffrey Gundlach, the co-founder and chief executive officer of DoubleLine Capital, said gold is likely to reach $1,400 as investors lose faith in central banks.

The metal has an immediate resistance at 1244.30 (1h 10-SMA) and 1250 (psychological levels). Meanwhile, the support stands at 1235.45 (1h 20-SMA) below which doors could open for 1214.02 (5-DMA).

Reference: Reuters, Bloomberg, FXStreet