Gold hits record high, above 26,000 rupees

The October contract was trading 3.16 percent higher at 26,041 rupees. It has risen over 11 percent in August.

Rupee fell sharply on Tuesday to its lowest in 10 weeks as a selloff in global equities ignited fears of foreign fund outflows.

International spot gold gained more than 2 percent on Tuesday, roaring to all-time highs for a second consecutive session to stand above $1,750 as equity markets dived on growing fears of a global recession following last week's U.S. credit downgrade.