Gold climbed to $1,228.40 (+0.47%) as tumbling equities increased demand for safe-haven assets. Physical demand in top consumers India and China is not impressive; however investor appetite for bullion is quite high as shown by ETF data. Holdings of SPDR Gold Trust, the largest gold-backed exchange-traded-fund are at the highest level in almost a year.

Gold has been one of the best performers this year with a 16% gain.

Some analysts say the precious metal is likely to test its recent high of $1,240 some time soon.