Gold has been breaking records over recent days and weeks amidst global financial fears [AP]

The price of gold has struck a record high level in trading in British capital, London.

Gold hit $1,215.85 on the London Bullion Market on Wednesday just after breaking through the $1,200 barrier for the first time on the previous day.

Gold has broken record after record over recent days and weeks on the back of inflationary fears and increasing moves by central banks to diversify assets away from the dollar, which has weakened against the euro and yen.

Dealers have recently shifted heavily into gold, which is viewed as a safe-haven commodity, due to the uncertain economic outlook and increasing divestments by central banks around the world.

The yellow metal, whose two main drivers are jewelery and investment buyers, has also won favour in the uncertain economic climate and fears of a mounting Dubai debt crisis.