According to reports, marriage season and the diversion of funds by investors to bullion owing to equities drop has lead to the increased demand of gold, escalating its price across the known rate of Rs 26, 000 per 10 grams for the first time.

Also, moving on with its five-day long high streak, the metal got an additional Rs 214 to Rs 26,055 per 10 grams in the national capital, backed by `strong global cues' where the metal reached high record levels.

However, in New York, gold is said to have gone up to an all-time high of $1,782.50 per ounce, after the Federal Reserve, who intended to `bolster' the economy, promised to maintain its benchmark interest rate below the record.

Market experts said: "The spurt in demand for gold is mainly due to US credit rating downgrade and a faltering economy, which boosted the demand for protection of wealth".

Moreover, a major increase was seen in prices after Standard and Poor's announcement of downgrading the US credit rating from AAA to AA+, which lead to a rout in global equities and raised concern that the US may fall back into another recession.