On Tuesday, as the value of the US Dollar weakened and concerns over Dubai's financial troubled eased a little, the price of gold jumped to a record high once again. Gold's recovery, which was hit bad when Dubai announced its debt woes last week, has been made possible on the back of Bank of Japan's announcement that it would ease monetary policies and the Reserve Bank of Australia's raising of interest rates.

As confirmed by official figures, gold rose to a record high of $1.199.25 per troy ounce, which is a recorded rise of 1.7% as compared to the figure for the previous day. At around 10.00 am GMT, the metal was trading at $1,194.30 per ounce, and hit a high of $1,200 an ounce before finally settling at $1,196.60 for one ounce.

The value of Euro was recorded as $1.5068 at closing.

"It's probably a combination of what's happening in Japan, and the Dubai World situation seems to have calmed down a little bit", said Mitsubishi Corp. analyst Tom Kendall.

Experts are of the opinion that the sudden rise of gold, after Friday's 5% drop has managed to efficiently demonstrate "the appetite of investors looking to buy gold on dips, making a steep correction unlikely". Other precious metals, including Silver and Platinum, also followed gold's lead and closed at values higher than those recorded for Friday.