Alarmed at the plunging value of their currency, Europeans are leading an exodus out of the euro and into gold.

The burgeoning demand pushed gold for delivery this month up 1.6% on Tuesday to settle at an exchange-record $1,219.90 on the Comex division of the New York Mercantile Exchange. The gains continued in electronic trading after the close, where gold reached $1,233.50 an ounce.

The...