MCX gold futures rose 0.39%, or Rs 186, to Rs 47,763 per 10 grams. Silver futures traded with gains of 1.17%, or Rs774, higher at 67,164 per kg.
The yellow metal rallied after the US Federal Reserve continued its accommodative stance. The dollar index fell to its lowest level in two weeks as the Fed signaled a rate hike was far away.
On the spot market, the highest purity gold was sold at Rs 47,761 per 10 grams, while silver was priced at Rs 66,386 per kg on Wednesday, according to the Indian Bullion and Jewelers Association.
Physical gold and silver prices have remained lukewarm over the past two weeks. The yellow metal has fallen to Rs 700, while silver has lost to Rs 3,000 over the past two weeks.
Demand for precious metals remained lukewarm in the world’s second largest gold market. However, analysts expect demand to move north in the coming weeks.
Large stimulus tend to support gold, which is seen as a hedge against inflation and currency depreciation. Powell also downplayed the risk of the Delta variant of the coronavirus spreading on the economic recovery.
“We expect gold prices to trade sideways higher for the day with COMEX spot gold support at $ 1,800 and resistance at $ 1,833 an ounce. MCX Gold August’s support stands at Rs 47,300 and resistance at Rs 47,900 per 10 grams, “said Tapan Patel of HDFC Securities.
Spot gold rose 0.5% to $ 1,815.56 an ounce at 1:29 am GMT, after peaking since July 20 at $ 1,817.35. US gold futures rose 0.9% to $ 1,815.30 an ounce.
Silver rose 0.9% to $ 25.15 an ounce. Palladium rose 0.6% to $ 2,641.69 an ounce, while platinum gained 0.8% to $ 1,073.42.