LONDON: The price of gold struck a record high level above 1,215 dollars an ounce in trading here on Wednesday.

Gold hit 1,215.85 dollars on the London Bullion Market one day after breaking through the 1,200-dollar barrier for the first time.

After reaching a new high on Wednesday, gold pulled back slightly to trade at 1,210.50 dollars at about 0740 GMT.

Gold has smashed record after record over recent days and weeks on the back of inflationary fears and increasing moves by central banks to diversify assets away from the dollar, which has weakened against the euro and yen.

The yellow metal, whose two main drivers are jewellery and investment buyers, has also won favour in the uncertain economic climate and fears of a mounting Dubai debt crisis. Gold is traditionally viewed as a safe-haven investment.