In addition, the weaker rupee and diversion of funds through melting equity markets supported the upward spiral in gold prices.
At the actual Multi Commodity Exchange, December gold surged by Rs 1, 408, or 0. 22%, hitting another high of Rs 28, 347 per 10 grams, with a company turnover of 279 lots.
October delivery rose by Rs 70, or 0. 18%, in order to Rs 28, 024 per 10 grams, with a business turnover of 5, 990 plenty.
Analysts attributed the persistent rise in gold futures prices to speculative positions developed by participants, bolstered by a rally overseas amid fears of another US recession and contagion from the euro zone debt crisis, which raised demand for bullion as a secure haven.
The falling value of the rupee, which plays a major role in determining the landed cost from the dollar-quoted shiny metal, also influenced prices, they said.
The rupee depreciated through 28 paise today to trade at Rs 46. 02 in the currency markets, a level last seen on November 30 last year.
Meanwhile, gold climbed with a record $25. 90 to $1, 879 an ounce in the Asian area today.