The October contract rose 1.07 percent to 27,464 rupees at 0434 GMT. It has risen nearly 17 percent in August. International spot gold rate surged to record highs on Friday for a second consecutive session as investors reached for the safety of bullion

The Peabody-ArcelorMittal combine has offered a bid of AUD 15.50 per share plus a dividend of 16 cents per share, following the rejection of their conditional offer for an increase to AUD 16 per share by the Australian miner's Board.