Domestic gold prices surged again on Wednesday as the dollar slumped after US President Joe Biden's remarks seemed to have calmed investors worried about an explosion in Poland.

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On MCX, yellow metal prices hiked by nearly 0.6 percent to touch Rs 53,070 per 10 grams on Wednesday. Meanwhile, Silver prices also gained by over 0.1 percent and were trading at Rs 62,277 per kg. Globally, Spot gold was down 0.3 percent at $1,772.95 per ounce, as of 0714 GMT, after hitting its highest since August 15 on Tuesday.

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The gain in metal prices same as US Dollar Index Futures slumped by 0.25 percent to 106.025 around 2:45 pm. In initial trade, the dollar index was trading marginally higher at 106.3. With this, the rupee had depreciated by 29 paise to 81.39 vs US dollar.

The gain in metal prices was also supported by a drop in crude oil prices on Wednesday. Brent crude futures were down 0.6 percent at $93.2 per barrel in the early trade. WTI futures were also trading 0.8 percent lower at $86.2 per barrel.

On Wednesday, Indian equity benchmarks BSE Sensex and NSE Nifty50 started the session lower on Wednesday before scaling to record high later in the trade.

Late on Tuesday, an explosion was reported in Poland that killed two people. The United States and its NATO allies said they are investigating the blast, but early information suggests it may not have been caused by a missile fired from Russia, US President Joe Biden said. Russia had denied it was responsible.

Biden's comments lifted sentiment in the wider financial markets, with MSCI's broadest index of Asia-Pacific shares outside Japan rising more than 2 percent, Reuters reported.