Gold prices spurted on the bullion market on Wednesday on sustained buying by stockists influenced by a firming trend in international markets and set a new high at Rs 7,750 per ten gram.
Trading activity continued to be boosted by rising trend in overseas markets, which normally set prices in domestic markets.
Gold traded at a 24-year high in Asia as jewelers purchased the precious metal.
Gold has risen 17 per cent this year, heading for a fifth straight annual climb, outperforming a 4.3 per cent gain in Standard and Poor's 500 Index.
Russia's central bank said it might double gold reserves, while central banks of South Africa and Argentina also said they might buy more bullion.
Gold for immediate delivery rose 40 cents, or 0.1 per cent, to $511.80 an ounce, the highest since April 1981.
Gold for delivery in February rose $1.70 to $515.50 an ounce on the New York Mercantile Exchange, the highest since February 1983.
In Delhi, standard gold and ornaments surged to Rs 7,750 per ten gram, a level never seen before, and ornaments rose by Rs 40 at Rs 7,600 per ten gram. Sovereign held unchanged at Rs 5,900 per piece of eight gram.