The gold price crossed Rs 28,000 per 10 grams, an all-time high, in the national capital on firming global cues.
Globally, gold price in sterling rose to a record high of 1128.25 pounds an ounce on Friday, as fears about the health of the global economy prompted investors to pile into safe haven assets.
Spot gold earlier rose more than 1 per cent to a record high above $1,850 an ounce.
Gold futures hit record at Rs 27,500
India's benchmark gold futures on the Multi Commodity Exchange (MCX) extended gains by more than 1 percent on Friday 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 rate surged to record highs on Friday 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.
