The price of gold touched an all-time high of Rs 44,240 for a sovereign on Saturday with an increase of Rs 1,200 within a day in Kerala. The gold rate was Rs 43,040 on Friday.
The price of gold per gram hit Rs 5,530.
The aggravating financial crisis in US and Europe along with the collapse of banks such as Silicon Valley Bank and Credit Suisse has resulted in a steep hike in gold rate.
Gold was trading higher in the international market with the Spot gold rate at Rs 1,988 per troy ounce.
The customers will have to pay at least Rs 48,000 to purchase a sovereign of gold by including the making charge, which is minimum 5 per cent.
A similar recession occurred in 2008 had resulted in the hike of gold rate from Rs 9,200 to Rs 24,240.