Gold prices on Wednesday hit a record high of Rs 16,785 per ten gram in futures trading at the Multi Commodity Exchange as traders enlarged their positions in tandem with a firming global trend after the US dollar weakened.

Gold for delivery in far-month February contract surged to Rs 16,785 per ten grams before slipping 0.58 per cent to Rs 16,774 per ten gram in a turnover of 164 lots.

In a similar fashion, April month contract rose by 0.77 per cent to hit a high of Rs 16,781 per ten gram with a business turnover of 3 lots.

Similarly, the metal for delivery in December month shot up to a high of Rs 16,749 but slipped to trade 0.57 per cent at Rs 16,729 per ten gram in a business turnover of 1,995 lots.

Market analysts said firming trend in international markets as a weaker dollar raised gold's appeal as an alternative investment, attributed to the rise in precious metal at the futures market here.

Meanwhile, In the Asian region gold prices traded higher at $1,106.50-1,107.50 an ounce against last close of $1,098.50-1,099.50.