Sovereign gold, however, held steady at 28,800 per eight grams.
Gold prices rose for the third straight day on Thursday and continued its record-breaking run.
Gold price hit a new high of Rs 38,970 per 10 grams, news agency Press Trust of India (PTI) reported.
The prices jumped by Rs 150 on the back of a weaker rupee and safe-haven buying from investors due to weak equity markets.
Despite sluggish overseas trend, gold prices rose on account of sustained buying from local jewellers, the report quoted traders as saying.
Gold prices have been hitting a fresh high everyday since Tuesday.