A quarterly investment digest compiled by WGC also said that jittery financial markets, global economic uncertainties and a low US interest rate environment boosted gold to an average price of $924,83 an ounce for the first quarter.

"The ongoing credit crisis and increased market volatility in the first quarter caused investors to seek safe haven investments, pushing the price of gold to a new all-time high," said Natalie Dempster, investment research manager of WGC.

"Although the gold price did not escape the volatility of the markets entirely, it did remain less volatile than other asset classes," she said.

Price volatility jumped to a quarterly peak of 28 percent on March 20, while silver and palladium volatilities jumped to 70 percent in late March, WGC said.

In addition, bullion used to back streetTRACKS Gold Shares, the No. 1 gold ETF, climbed 14 tonnes to 642 tonnes in the first quarter.

Spot gold traded at $918 an ounce on Tuesday, while US gold futures for June delivery on the COMEX division of the New York Mercantile Exchange ended at $925,20.

Spot gold hit an all-time high of $1 030,80 an ounce on March 17.

In 2007, South Africa lost its status as the world's largest gold mining country, with output slipping to 270 tonnes, according to WGC.

China now led the world in gold production with just over 280 tonnes of bullion last year, followed by South Africa, Australia, the United States and Peru.