A weak dollar also enhanced its appeal as an alternate investment.
Gold for delivery in far-month February contract surged by Rs 90 or 0.6 per cent to hit a new high of Rs 17,061 per 10 gm in a turnover of 400 lots.
Similarly, April month contract rose Rs 78 or 0.5 per cent to trade at record high of Rs 17,061 per ten gram with a business turnover of 1 lot, while delivery in December contract surged by Rs 97 or 0.6 per cent to Rs 17,021 per 10 gm with a turnover of 3,590 lots.
Market analysts said continued upsurge in gold prices in international markets after a weakening dollar raised its appeal as an alternative investment attributed to the rise in the precious metal's prices at the futures market in Mumbai.
"Besides firming global trend, investment and seasonal domestic demand for the ongoing marriage season also helped gold to cross Rs 17,000-per-ten-gram level," said an analyst.
Meanwhile, gold prices in Hong Kong traded higher at record $1,140.00 an ounce in early trade on Tuesday.
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