The price of gold went up on MCX on Wednesday with gold for June 5 delivery traded 0.44 per cent higher at Rs 71,652 per 10 grams at around 11:30 a.m.

The gold price in the domestic futures market tracked the rally in the global market which saw the price of the yellow metal closing to a record high.

Both gold and silver prices recorded a hike on the Multi Commodity Exchange (MCX) on Wednesday.

Gold futures, maturing on June 5, 2024, stood at Rs 71,456 per 10 grams on the MCX, after recording a jump of Rs 116 or 0.16 per cent. The previous close was recorded at Rs 71,340.

Gold prices were hovering near record-high levels of $2,351.94 per ounce in the global market on Wednesday morning trade as big buying by central banks fuelled the rising demand for the precious metal amid escalating geopolitical risks and rising inflation. Indications of a US Fed rate cut have also led to an increase in the demand for gold as financial assets are seen as less attractive by investors.

Gold prices have now risen by as much as 14 per cent this year.

Gold prices held firm in the Indian market on Wednesday with some variations among cities. The price in Delhi was hovering at around Rs 71,890 per 10 gms for 24-carat gold while in Mumbai it was Rs 71,790. The gold price was highest in Chennai at Rs 72,150 per 10 gms of 24-carat gold while in Kolkata and Bengaluru, the price of the precious metal hovered at around Rs 71,280.

The demand for gold in the Indian market is also driven by the need for jewellery which is a major traditional gift in marriages. However, jewellers are of the view that the soaring gold prices are dampening this demand as gold tends to go out of the reach of middle-class families.