Gold prices in India traded flat with a positive bias on the Multi Commodity Exchange (MCX) Thursday on increasing tensions between the United States and China and weakness in dollar index against the major currencies. Monetary stimulus from the central banks and governments supported positive sentiment for the bullion prices, analysts said.

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At 11:25 am, gold futures for June delivery gained 0.15 percent to Rs 46,600 per 10 grams as against the previous close of Rs 46,531 and opening price of Rs 46,444 on the MCX. Silver futures traded 0.33 percent higher at Rs 48,552 per kg. The prices opened at Rs 48,280 as compared to the previous close of Rs 48,390 per kg.

“Tension between US and China and weakness in the dollar are the supporting factor for the gold. Dollar Index is depreciating against major currencies and it is trading around 98.96 levels which is the lowest level in the last 5 weeks. For intraday perspective we expect a positive trend in Gold prices,” said Anuj Gupta, DVP Commodities and Currencies Research, Angel Broking Ltd.

In the global market, gold edged up after hitting a two-week low in the previous session as the rift between Washington and Beijing over Hong Kong escalated, with prices also supported by central bank and government largesse to cushion the blow from the pandemic.

Spot gold was up 0.2 percent at $1,712.39 per ounce, after dropping to $1,693.22 on Wednesday. US gold futures were flat at $1,711.40.

Weak Indian rupee against the US dollar also supported the yellow metal prices in the domestic market.

“Traders can buy MCX Gold June contract at Rs 46,300 to 46,400 levels, with the stop-loss of 45,950 levels for the target of 46,900 to 47,000 levels,” Gupta added.

Meanwhile, buying in the domestic equity market capped gains in the gold. The benchmark Sensex was trading 552.16 points or 1.75 percent higher at 32,157.38 while the Nifty50 gained 154.25 points or 1.66 percent to 9,469.20.