Gold Futures had rallied to a fresh high late last week and today's surge created a fresh record in the futures market.
Gold has gained along with other asset classes, including equities and crude oil, as money continues to chase commodities. Gold, which has all along gone with the "safe haven" tag, is hardly exhibiting any of those characteristics and is moving in line with other risky assets.
Globally, gold had risen sharply above $1,670 an ounce on Thursday, after rampant speculation following reports that there could be a possibility of fresh round of quantitative easing in the US.
Favourable negotiations in the Greece sovereign debt crisis, has also seen greater demand for the metal. Traders say that the rally may be over done, as gold consumption in major consuming nations like India has actually dropped.
India's is one of the largest consumers of gold and domestic consumption also drives international prices. India's investment and jewellery demand for Q2 2012, fell to 181.3 tonnes, down from 294.5 tonnes in Q2 2011, the World Gold Council stated recently.
At 56.5 tonnes, investment demand was less than half the level in Q2 2011. Indian jewellery demand also experienced a noticeable drop to 124.8 tonnes, down 30% year-on-year from 179.5 tonnes.