Gold futures hit record high of Rs 28,012
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India's benchmark gold futures extended last week's gains by more than 0.2 per cent on Monday morning to hit a fresh peak of 28,012 rupees, bolstered by a rally overseas and a weak rupee.
The October contract on the Multi Commodity Exchange rose 0.08 percent to 27,976 rupees at 0439 GMT. It has risen 19 per cent in August.
International spot gold surged 1.4 per cent to score an all-time high for a third consecutive session on Monday, as nervous investors fled to the safety of the bullion amid fears of another U.S. recession and the euro zone's debt crisis.
Spot gold struck a record top above $1,878 an ounce, after staging its biggest weekly gain in 2-1/2 years last week.
The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
Indian rupee weakened in early trade on Monday to levels not seen in nearly nine-months due to bunched up dollar outflows following a local forex market holiday on Friday.
International gold could hit $1,900 an ounce in the next six months, driven by buyers seeking an investment safe from global economic problems, but a further rise to $2,000 looks unlikely, metals consultancy GFMS said last week.
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