The most traded commodity gold for August delivery on MCX opened at Rs 23,901 per 10 grams and was trading between Rs 24,013 – Rs 24,045 per 10 grams around 11:30 am IST.
A global sell-off in equities was triggered over concerns about global economic growth.
In US, consumer confidence is already affected due to raging battle between the two parties in Congress over the government's debt ceiling and by high unemployment rate.
Fears among the investors is rising that another recession in US is just around the corner.
Wall Street closed after suffering one of the worst sell-off in history, and the worst since early 2009 when financial crisis took a big toll.
Ballooning debt in the European region is another factor motivating investors to park their money in gold. Europe's sovereign debt crisis is worsening by the day which has gradually outspread to Italy.
Gold for long has been considered a hedge against inflation and also yielded the best returns during the times of uncertainties. one of the best bets in uncertain times.
Analysts said slowing global economic growth may boost the demand for precious metal further in a day.