Mumbai: Gold prices rose to a new all-time high above Rs13,000 in the local market even as the yellow metal hit the $1,000 an ounce mark in US futures market and crude prices rallied to levels above $110 a barrel, helped by a weak dollar.

In Mumbai, gold 0.995 purity closed Rs240 higher at Rs12,965 per 10 gm, while gold of 0.99 purity closed Rs240 higher at Rs13,025 per 10 gm.

US gold futures rallied to $1,000 an ounce while spot gold jumped to a fresh high of $997.50 an ounce. Gold was at 997.10 an ounce in late morning trade, up more than two per cent from the previous close of $981.90/982.70 an ounce in New York.

In London, gold hit a record $994.30 per ounce on a weak dollar and high oil prices as players shied off from risk and heading and moved towards safer assets.

US crude oil futures climbed to a record high of $110.70 a barrel as the weak dollar offset news of an increase in US crude inventories.

While fears of an industrial recession held back a rally in industrial metals, commodities like cocoa and coffee also rose.

Robusta coffee futures on the London market rose on speculative buying, with the May futures up $39 or 1.47 per cent at $2,691 a tonne while ICE cocoa may futures on ICE rose $96 or 3.5 per cent to $2,872 per tonne.

Wheat pared Wednesday's gains despite concerns over tight global supplies.

The dollar sank to a 12-year low, and an all-time low versus the euro as traders fretted over the health of the US economy and global financial sector.

Fears of a recession and planned rate cuts by the US Fed to help shield the US economy is piling pressure on dollar, while also boosting gold and oil as alternative investments.

A falling dollar makes dollar-denominated commodities cheaper for investors in other currencies. It has helped bullion gain 19 per cent and oil over 15 per cent so far this year.