New Delhi | Agencies: Gold prices on Thursday surged Rs 254 to Rs 45,800 per 10 gram in futures trade as speculators indulged in creating fresh positions on firm spot demand.

On the Multi Commodity Exchange, gold contracts for June traded 0.56 per cent higher or Rs 254 to Rs 45,800 per 10 gram. The yellow metal for August delivery edged up 0.61 per cent or Rs 280 to Rs 45,937 per 10 gram in a business turnover of 5,650 lots.

Fresh positions built up by participants on spot demand mainly led to rise in gold prices, analysts told PTI.

In the international market, Spot gold rose 0.3 per cent to USD 1,715.84 per ounce, while US gold futures rose 1 per cent to USD 1,730.30 per ounce.

Gold prices bounced back from early losses, as the U.S. Fed's decision to keep interest rates near zero and hopes of fresh stimulus from ECB driven by positive trial results of an experimental treatment for coronavirus.

"The massive support we're getting from the Fed is underpinning the general trend of support for gold... Gold is going to look very attractive as it doesn't cost anything to hold it right now," said Stephen Innes, chief market strategist at financial services firm AxiCorp as quoted by Reuters.

The weakness in the dollar and expectations that the European Central Bank may "also play some catch up" gave gold an extra boost, he added.

Silver prices, on the other hand, also rose 2.4 per cent to Rs 42,776 per kg in futures trade as participants widened their bets on firm spot demand.

On the MCX, silver contracts for May delivery gained 2.4 per cent or Rs 1,001 to Rs 42,776 per kg. Similarly, the white metal for delivery in July was trading 1.85 per cent or Rs 782 higher at Rs 43,144 per kg.

Elsewhere, palladium rose 3.1 per cent to USD 1,995.87 an ounce, platinum gained 0.2 per cent to USD 776.35 per ounce, while silver slipped 0.5 per cent to USD 15.29 per ounce.

(with PTI, Reuters inputs)

Posted By: James Kuanal