LONDON (Commodity Online): It was a week of rise and rise for gold as the precious metal scaled new heights by gaining strength from the safe haven buying.

And, it seems there is no end to the gold rally as the metal is expected to cross new barriers in the coming week.

According to data, gold set a new record of $1,260 an ounce on Friday as momentum triggered by buying of the metal as a haven from sovereign and financial risk pushed prices.

Spot gold hit a high of $1,257.85 an ounce. US gold futures for August delivery also hit a record $1,260.90, and were later up $9.20 at $1,257.90. The precious metal has risen 15 per cent since the end of 2009, fuelled by sovereign risk in the euro zone, historically low interest rates, and concern over the stability of paper currencies.

Sovereign debt worries, central banks raising their holdings and record low interest rates keep attracting new buyers to gold.

The dollar fell to three-week lows against the euro on Friday, and a one-month low versus the Swiss franc, pressured by disappointing US data, which helped push US Treasury yields to their lowest in a week.

Holdings of the world's largest gold-backed exchange-traded fund, New York's SPDR Gold Trust, hit record highs at 1,307.963 tonnes on Thursday as investors continued to turn to physical bullion as a haven from risk.

Silver tracked gold higher to a four-week peak of $18.97 an ounce against $18.67, slightly outperforming the yellow metal, and was later at $18.70.