Gold priced in euros rose to its fourth record high in five days on Monday after pledges by the European Central Bank to contain the euro zone debt crisis and the world's seven richest nations to provide the broader markets with stability failed to calm investors.

Gold in euros rose to 1,196.83 euros an ounce, marking a 2.7 percent gain on the day. The euro itself pared earlier gains made after the ECB widened its bond-buying programme to include debt from Spain and Italy, which has been under investor fire for three weeks as concern has flared about these two countries' finances.

The downgrade by ratings agency Standard & Poor's on Friday to the quality of U.S. sovereign debt has punished riskier assets such as stocks and boosted demand for safe-havens such as gold or Swiss francs. (Reporting by Amanda Cooper and Jan Harvey; Editing by Alison Birrane)