Gold prices rose to hit a record high of Rs 16,254 per ten gram in futures trading on Tuesday on fresh buying as speculators indulged in enlarging positions, driven by firming overseas markets. At the MCX counter, gold for far-month February contract remained at 0.75 per cent, or Rs 109 at record high of Rs 16,254 per ten gram with turnover in 109 lots.

Similarly, gold for delivery in December contract rose by 0.73 per cent to Rs 16,248 per ten gram, recording business turnover in 1,524 lots.

Market analysts said rise in gold prices at domestic market was mostly attributed to firming trend in global markets on continued dollar's weakness, raising the yellow metal's appeal as an alternative investment.

Meanwhile, gold in global markets traded higher USD 1,063 an ounce against Monday's close of USD 1,059 an ounce.