Gold bars are put on exhibition at Habib Jewels' boutique in Kuala Lumpur in this September 17, 2009.

Gold hit record highs close to $1,250 per ounce in Europe on Friday as shareholders purchased the metal to guard against sovereign jeopardy in the Euro zone and unsteadiness in the foreign exchange markets.

Spot gold hit a record $1,248.95 and was bid at $1,246.75 per ounce at 1046 GMT, 6:46 a. m. EDT, against $1,231.83 late in New York on Thursday.

U. S. gold futures for June delivery on the COMEX division of the New York Mercantile Exchange increased $17.70 to $1,246.90 per ounce.

BNP Paribas analyst, Anne-Laure Tremblay said that it is expected that gold price rise has proved to be an advantage especially for the investors, offering them refuge and guarding them from risky Euro zone.

A $1 trillion save contract intended at stabilizing monetary markets that were announced last weekend assisted the Euro and European equities to recuperate some losses, but the increase it offered the markets has confirmed to be brief.

A weaker Euro and accordingly stronger dollar would typically weigh on gold, however this relation has been damaged as sovereign danger worries fueled buying both of gold bars and the U. S. currency.