Gold price surpassed all previous records on Thursday, deepening jewelers and traders' concerns of a further slowdown in the demand for the precious metal.

The price of the yellow metal surged to an all-time high of Rs 31,035 per 10 grams. In Mumbai, Gold price surged to a record high of Rs 30,515.

Demand for gold, both in investment and jewellery form, has declined drastically over the past few months due to high inflation and uncertain economic conditions, which led to a negative buying sentiment.

While the price of gold is still some distance away from hitting its record high globally, India consumers are suffering a sharper spike because the rupee has depreciated drastically over the past 12 months, making imports more expensive.

Increase in import duties and record-high local prices of essentials due to depreciation in the value of rupee have hit consumers' purchasing power. High price have been forcing consumers to postpone their purchases around a time when the industry expected an increase in sales.

Earlier this week, Bombay Bullion Association President Prithviraj Kothari predicted that poor monsoon, fewer wedding dates and near record high prices of the yellow metal would drag demand down by 40 per cent year-on-year to 200 tonnes in the September to December period.