MUMBAI: India's benchmark October gold contract hit a record high of 30,699 rupees per 10 grams on Thursday, tracking gains in the overseas markets, though a firm rupee capped the upside.

International spot gold prices rose to their highest levels in more than three months, shaking off months of lethargy after minutes from the latest US Federal Reserve meeting fuelled hopes for the swift launch of more bond buying.

The Indian rupee rose to an over one-week high on Thursday.