India gold hits record high of 27,500 rupees/10 gms

India's benchmark gold futures on the Multi Commodity Exchange extended gains by more than 1 percent on today morning and hit a new peak of 27,500 rupees per 10 grams, tailing a rally in the world market.

The October contract rose 1.07 percent to 27,464 rupees at 0434 GMT. It has risen nearly 17 percent in August.

International spot gold surged to record highs on today for a second consecutive session as investors reached for the safety of bullion amid a worsening economic outlook for the United States and concern about the health of Europe's banks.

Spot gold rose more than 1 percent to an all-time high of $1,844.55 an ounce, before easing to $1,842.

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 on Thursday.