India's benchmark gold futures on the Multi Commodity Exchange extended the previous session's gains Thursday morning and hit a new peak of 26,557 rupees per 10 grams, tailing a rally in the world market and on a weak rupee.

At 10:22 a.m., the October contract was trading 0.38 percent higher at 26,495 rupees.

International spot gold edged higher on Thursday on persistent worries about euro zone debt woes and slower global growth, defying a rebound in the dollar.

The rupee was weaker in early morning trades on Thursday, tracking regional peers, and as dollar demand from oil refiners and negative shares weighed.