The U.S. Mint has temporarily halted distribution of its one-ounce American buffalo gold coins a month after placing limits on the sale of American eagle gold coins.

Coin dealers from the U.S. to Canada have reported a surge in buying of bullion coins and other gold products as troubles in the financial markets prompt people to seek a safe haven in precious metals.

"Demand has exceeded supply for American buffalo 24-karat gold one-ounce bullion coins, and our inventories have been depleted," the mint said in a note to its dealers. "We are, therefore, temporarily suspending sales of these coins."

The mint will update dealers "as information becomes available."

Gold set a record of $1,033.90 (U.S.) an ounce on March 17.

Yesterday, the U.S. gold contract for December delivery ended down $13 or 1.5 per cent at $882 an ounce on the Comex division of the New York Mercantile Exchange. Spot gold traded at $873 an ounce.