There exists a counterexample to this question of Paul.
It suffices to find a second-countable Hausdorff space $X$ that has two properties:
(1) the space $X\times X$ is Baire;
(2) for any nonempty open sets $U,V\subseteq X$ we have $\overline U\cap\overline V\ne\emptyset$.
Such a space $X$ cannot have $G_\delta$-diagonal. Indeed, assuming that the diagonal $\Delta_X$ is of type $G_\delta$ in $X\times X$, we can write $(X\times X)\setminus \Delta_X$ as the union $\bigcup_{n\in\omega}F_n$ of closed subsets $F_n$ of $X\times X$. Property (2) implies that $X$ has no isolated points and hence the diagonal $\Delta_X$ is nowhere dense in $X\times X$. Since the space $X\times X$ is Baire, there exists $n\in\omega$ such that $F_n$ has non-empty interior in $X\times X$. Then there are nonempty open sets $U,V$ in $X$ such that $U\times V\subseteq F_n$ and hence $\overline U\times\overline V\subseteq F_n$. Then $(\overline U\times \overline V)\cap\Delta_X=\emptyset$ and hence $\overline U\cap\overline V=\emptyset$, which contradicts the property (2).
For the space $X$ one can take the projective space of the countable product of lines $\mathbb R^\omega$. So, $X$ is the quotient space of $\mathbb R^\omega\setminus\{0\}^\omega$ by the equivalence relation $x\sim y$ iff $\mathbb Rx=\mathbb Ry$. Observe that the quotient map $q:\mathbb R^\omega\setminus\{0\}^\omega\to X$ is open. This fact can be used to show that $X$ is Hausdorff and its square $X\times X$ is Baire. Moreover, for any nonempty open set $U\subseteq X$ the closure $\overline{U}$ contains the image $q[(\{0\}^n\times \mathbb R^{\omega\setminus n})\setminus\{0\}^\omega]$ for some $n\in\omega$, which implies that the condition (2) is satisfied.