Fears of another U.S. recession and the euro zone debt crisis continue to send nervous investors to the safety of bullion. On Monday, spot gold surged 1.4 percent to an all-time high, setting the 10th record so far on August.

Analysts say persistent flow of weak macro data out of the U.S. and a complete lack of confidence in the marginal economies of Europe have driven gold to consecutive record highs. Traders are expecting gold prices to rise above 1,900 U.S. dollars per ounce, before starting a decent correction, as indicated by its wave pattern.

And support level is seen at 1,844, a fall below which will trigger a further loss to 1,820.

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