Gold prices have hit a fresh all-time high of $2,350 an ounce after swinging $27 higher during Monday’s Asia trading window.
Analysts have pointed to high central bank purchasing and 'de-dollarisation' as a key drivers.
“Touching on a theme we introduced last week, at a stretch one could question whether the dollar's failure to advance has something to do with de-dollarisation trends,” said UBS in a Monday research note.
“We note that gold is still pushing ahead strongly, and recent data shows that the People's Bank of China has been a consistent buyer of gold."
The PBoC purchased gold for a 17th straight month in March, continuing a buying spree that proved a substantial tailwind for the precious metal. India's central bank has added to the buying pressure.
Traders are also likely to be turning to gold as a safe haven amid ongoing Middle East conflict.