The rise in gold prices broke a two-month high. In Europe, spot gold hit $1,251.45 an ounce, breaking the $1,250 an ounce limit since June 2010, and finally stood at $1,250.55 an ounce. The weak dollar, concerns over the steadiness of the US economic growth have driven European investors to shift funds to gold, spiraling the price hike.

In India, the gold prices in New Delhi touched Rs 19,405 per ten grams rising by Rs 215, and outdoing the previous high of Rs 19,220 in June this year. The increased buying from stockists and jewellers to hoard for the coming festive season is increasing prices. Gold of 99.5 per cent purity valued Rs 19,305 per ten grams rising by Rs 215. Also, sovereigns increased by Rs 100 touching a record all time high of Rs 15,000 per piece of eight grams.