Bullion for October delivery advanced as much as 3% to Rs. 25,999 per 10 grams on the MCX at 10:01 a.m. in Mumbai.

India's benchmark gold futures on the Multi Commodity Exchange (MCX) extended gains on Tuesday. India gold futures hit record high of Rs. 25,180 per 10 grams.

Bullion for October delivery advanced as much as 3% to Rs. 25,999 per 10 grams on the MCX at 10:01 a.m. in Mumbai.

The October contract was trading 3.16% higher at Rs. 26,041. It is up over 11% in August.

Meanwhile, the rupee fell the most this year to its lowest in 10 weeks today.

The Indian unit fell below the 45-per-dollar mark today for the second day in a row after breaching the level for first time in five weeks yesterday.

Local stocks sank in line with a global rout following the downgrade of the US top rating by S&P over the weekend and amid lingering worries over the eurozone's fiscal stress.

At around 11:00 am (IST), the partially convertible Indian currency was at 45.22 to the dollar after hitting a day's low of 45.39/40. It earlier touched a day's high of 45.1965. It had opened at 45.37 versus the previous close of 44.97/98.

The 7.80% 2021 Government bond, was trading at Rs. 97.41, up 42 paise on the day so far. The corresponding yield was at 8.19%, down 6 bps.