Gold hits record high of $1,900 prompted by fears of global slowdown

The precious metal rose 0.9% to $1,913.50 an ounce in Asian trade.

Fears of a slowdown in the US and the debt crisis in Europe have spurred demand for gold which is seen as a safe investment in times of uncertainty.

Analysts said that with further US monetary stimulus looking likely, gold prices could rise even further.

"For the time being investors are happy looking at gold as safe haven in these troubled times, and will continue to do so until we see something positive and sustainable," Darren Heathcote of Investec Australia was reported as saying.

Analysts also said that demand for gold was also being driven by speculation that the US Federal Reserve may announce new stimulus measures in a bid to boost the economy.

Central bank governors from across the globe are scheduled to gather for their annual meeting at the Jackson Hole summit later this week.

There is growing speculation that Ben Bernanke, the governor of the US central bank, may announce fresh stimulus measures in his speech at the summit.

Analysis say that markets are hoping similar measures could be announced at this year's speech and that is spurring demand for gold, and that more stimulus could mean gold rises even further.

Given how the driver of gold prices is currently the plunging dollar value, more money being printed could mean that the gold gains more power.