Other metals also jumped, with platinum setting a life-time high, silver rallying to its best level in eight months and palladium rising to a two-week peak.
Geopolitical tension in the Middle East also lifted gold's appeal as a safe-haven asset, with speculators and investors betting on a rising market.
"The market is in a bull run. The consensus here is that gold could reach $800 in a short term and that's motivating the market higher. Also the risk for a U.S. rate cut is feeding the trend," said Frederic Panizzutti, analyst at MKS Finance.