Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Thursday after the US Federal Reserve spoke of lower growth fears in the second quarter while keeping the interest rate near zero, analysts said.

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At 12:40 pm, gold futures for June delivery rose 0.71 percent to Rs 45,868 per 10 grams as against the previous close of Rs 45,546 and opening price of Rs 45,801 on the MCX.

Gold prices in India have been volatile since hitting a record high of above Rs 47,000 per 10 gram earlier this month.

The US Federal Reserve on Wednesday left interest rates near zero and repeated a vow to do what it takes to shore up the economy.

"The trend in gold prices remains positive amid the virus risk and low interest rate environment," said Amit Sajeja, Associate VP, Research Commodities & Currencies at Motilal Oswal.

In the global market, gold eased on Thursday as risk appetite was boosted by positive trial results of an experimental COVID-19 treatment, although the US Federal Reserve's decision to keep interest rates near zero kept bullion above the $1,700 per ounce level.

Spot gold fell 0.1 percent to $1,710.21 per ounce by 0519 GMT. US gold futures rose 0.8 percent to $1,726.80 per ounce.

"Gold is expected to trade with positive bias going ahead. On MCX, gold may find immediate support at Rs 45,500 and resistance is placed at Rs 46,200," added Sajeja.

Meanwhile, silver futures traded 1.53 percent higher at Rs 43,011 per kg. The prices opened at Rs 42,695 as compared to the previous close of Rs 42,362 per kg.

First Published:Apr 30, 2020 9:43 AM IST