Gold-coated magnetic nanocomposites with unique physical and chemical properties have recently been subjected to extensive researches since the gold shells could improve their biocompatibility, functionality and stability further, which endue them with great application potentials in various fields. Several main approaches have been studied for the synthesis of gold-coated magnetic nanocomposites, including microemulsion, sonochemical synthesis, self assembly, seed-mediated growth method, and laser irradiation. This review is focused on describing various strategies for the preparation of gold-coated magnetic nanocomposites. Furthermore, we also introduce main applications of gold-coated magnetic nanocomposites in biomedical fields and point out some challenges in the synthesis of high-quality gold-coated magnetic nanocomposites.