Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Thursday as worries over second phase of virus infections dampened risk appetite amid mixed fundamentals, analysts said. Weak Indian rupee also supported the yellow metal prices. At 12:50 pm, gold futures for June delivery rose 0.52 percent or Rs 239 to Rs 46,220 per 10 grams as against the previous close of Rs 45,981 and opening price of Rs 46,062 on the MCX.

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“Domestic gold prices gained after the recent correction in the rupee. The rupee is expected to remain weak against the US dollar that will continue to support the yellow metal prices going ahead,” said Ajay Kedia, Director, Kedia Commodity Comtrade.

In the global market, gold prices eased after the US Federal Reserve Chairman Jerome Powell downplayed the possibility of negative interest rates. However, the losses in the yellow metal price were capped on his warning of an extended period of weak economic growth.

Spot gold was down 0.2 percent to $1,712.58 per ounce, having jumped 0.8 eprcent in the previous session on Powell's dour view on the recovery of an economy battered by the coronavirus pandemic. US gold futures rose 0.3 percent to $1,721.60.

“Fundamentals for gold prices remain mixed. However, long term view is positive amid the bleak global economic prospects. Gold has consolidated in a broad range of $1,680-1,725 per ounce,” Kedia said.

Kedia expects a big rally in gold prices towards $1,760 if the range of $1,725 is broken.

“On MCX, gold prices can rise towards Rs 47,200 in upcoming days,” Kedia added.

Meanwhile, silver futures traded 0.56 percent higher at Rs 43,207 per kg. The prices opened at Rs 43,177 as compared to the previous close of Rs 42,965 per kg.

First Published:May 14, 2020 12:58 PM IST