Gold prices rose in Thursday trade after US Federal Reserve Chair Jerome Powell warned of a prolonged recession for the US economy due to COVID-19, which supported yellow metal prices. Powell also hinted that the US central bank will have a negative interest-rate policy which is off-base, but vowed to prop up the virus-hit economy.

On MCX, gold June futures gained Rs 186 or 0.40 per cent at Rs 46,167. While silver July futures were ruling at Rs 43,121 per kg, up Rs 156 or 0.36 per cent. "After the consolidation of the last two weeks gold is able to trade above Rs 46,000 levels. Expectation of negative interest rates by Federal Reserve Chairman Jerome Powell supported the gold prices as it increased safe-haven demand," Anuj Gupta, Deputy VP- Commodities & Currencies Research, Angel Broking Ltd said. Further, "we expect gold may trade positive towards Rs 46500 to 46700 levels," he added.

Globally, spot gold climbed 0.1% to $1,716.66 per ounce US gold futures rose 0.6% to $1,726.20. Palladium rose 0.8% to $1,832.72 an ounce. Among other precious metals, platinum gained 0.2% to $758.35, while silver fell 0.6% to $15.55. SPDR holdings rose 0.78% to 1,092.14 tonnes on Wednesday. On the domestic front, "for intraday perspective, traders can buy gold around Rs 46,000 to 46,100 levels, with the stop loss of Rs 45800 levels and for the target of Rs 46600 to 46700 levels. In international Market Gold can test $1730 to $1740 levels," Anuj Gupta added.

Apart from hopes of another stimulus package from the US government, "Concerns over the next wave of virus outbreak will also assist the sentiments in gold. Meanwhile, a steady dollar ahead of key US economic releases and limited physical market activities are likely to cap major gains," Hareesh V, Head Commodity Research at Geojit Financial, said.

Apart from hopes of another stimulus package from the US government, "Concerns over the next wave of virus outbreak will also assist the sentiments in gold. Meanwhile, a steady dollar ahead of key US economic releases and limited physical market activities are likely to cap major gains," Hareesh V, Head Commodity Research at Geojit Financial, said.

On the domestic equity front, Sensex was trading at 31,390.29, down 618.32 points or 1.93 per cent. While the broader Nifty 50 index was ruling 170 points or 1.82 per cent down at 9,213.15.