Gold rates in the Indian market hit a record high of $398.42 for ten grams on Tuesday and marked its closure at $398.11.

The increasing gold prices have severely disturbed the budget of buyers during the ongoing marriage season.

On the Multi Commodity Exchange (MCX), gold futures were ruling 1.88% up, following strong cues from abroad markets, where safe haven buying supported the yellow metal.

Mr. Ashwini Bhinde, a customer. Said, "Prices have soared a lot. They are no more worth it for buying. But we have to buy it in times of need, though rather than buying more we buy less now. That is why people are buying now."

Jewelers hope that gold rates will continue to soar and reach around $467.63 by Deewali season.

Mr. Ashwini Pethe, owner of a jewelry showroom stated that the customers are purchasing gold in the raw form rather than ornaments for future use and also reckoning its value in appreciation.

But, the World Gold Council said that the gold demand is likely to be strong in this year on the back of increasing interest for jewellery in India and China irrespective of high local prices.

"It (Gold) depends on the international market rate. The rates are fixed in London, although the maximum consumption is in India and China. China is purchasing gold to improve their capital while in India most of the people are purchasing gold for the ornaments. That is the basic difference between the two countries. Out of 100 per cent, say almost 30 per cent gold consumption is done by India," Mr. Pethe said. (With Inputs from Agencies)