Gold rose on Wednesday, spurred by the dollar's tumble to record lows against the euro, oil at all-time peaks and market worries about financial stability.

Spot gold was at $934.70/935.40 a troy ounce at 6:22 a.m. EDT compared with $927.60/928.40 in New York late on Tuesday. It hit a record high of $1,030.80 an ounce on March 17, but tumbled to a two-month low of $872.90 in early April.

Record high euro zone inflation data confirming a view that the European Central Bank was unlikely to cut interest rates in the near future sparked a bout of euro buying, which took the dollar to almost $1.60.

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Concerns that the quarterly reporting season would reveal fresh asset writedowns at U.S. investment banks also prompted investors to sell the dollar, which boosted sentiment in the bullion markets.

"The overall environment remains very positive for gold because the dollar is so weak, oil prices buoyant and there is concern about financial markets," said Suki Cooper, analyst at Barclays Capital.

"In the near term, I think gold will trade in consolidation mode between $900 and $940."

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