Gold surged to record levels above $1,920 an ounce on Tuesday, driven by fears that Europe's debt crisis will deteriorate further, as well ongoing concerns relating to tepid U.S. economic growth. The price slipped back later in the day to just over $1,900.

December delivery futures in New York also touched a record $1,923.10, up 2.5 percent from their close on September 2.

In addition, futures in India and China, the world’s two largest consumers of the yellow metal, touched all-time highs.

Investors are concerned that European governments do not have the political will to deal with sovereign debt crises that are affecting some members of the euro zone.

Gold is in the eleventh year of a bull run, which is the most prolonged rally for more than 90 years.

The finance ministers of Finland, Germany and The Netherlands met on Tuesday meet today to discuss a demand by Finland for collateral in return for taking part in the bailout of Greece, leading to jitters among investors.

In addition, Italian legislators were to discuss proposed austerity measures amid a strike called by the nation’s biggest union.

Also boosting the price of gold is China where gold investment demand soared 44 percent in the second quarter from a year ago to 53 tons, according to the World Gold Council, the second-highest figure after that of India.