There was frantic buying by stockists and local investors, avoiding the current fortnight of Shradh, considered to be an inauspicious period in Hindu mythology for new purchases.
The precious metal had set a record at Rs 6,720 per ten gram on November 26, last year and surged past that mark this time on the back of rising crude oil prices, firm international trend and melting bourses in the country.
Marketmen said the bullion received some buying support from funds shifting from the Indian stock markets where share prices had their first biggest fall in five months and lost around 300 points.
"The market has no real customer for jewellery during this week but gold prices continue to surge on stockists buying in line with a firm overseas trend where gold quoted over 17-year high", said Delhi-based jeweller Mahesh Verma.
The yellow metal crossed 17-year high as oil price prompts inflation concern and spurred demand for the precious metal as a hedge against inflation. The crude oil prices rose for a second day as Hurricane Rita threatened refineries on the Texas coast.
He said the brisk buying by stockists was to prepare to meet the marriage and festival demand beginning after the Shradh.
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