NEW DELHI: Gold and silver prices leapt higher on Thursday after the Fed painted a gloomy outlook of the US economy, spurring demand for safe haven metals while a sharp rise in Covid cases in India continued to remain a worry.

Total number of Covid-19 patients in India reached over 2.8 lakh while fatalities climbed to 7,900 levels. The numbers could also increase faster as India has eased restrictions in most parts.

Gold futures were up 1.24 per cent or Rs 578 at Rs 47,204 per 10 grams. Silver futures added 1.96 per cent or Rs 943 to Rs 49,027 per kg.



Prices of gold rose by Rs 245 to Rs 47,664 per 10 gram in the national capital on Wednesday helped by positive international trends, according to HDFC Securities. Silver prices, however, dipped Rs 110 to Rs 49,340 per kg.

Globally, gold prices touched a more than one-week high on Thursday, as bleak economic projections from the US Federal Reserve boosted demand for the safe-haven metal.

Spot gold was down 0.2 per cent at $1,732.56 per ounce, as of 0114 GMT, after hitting its highest level since June 2 earlier in the session. US gold futures climbed 1.2 per cent to $1,741.90.

On Wednesday, the US central bank repeated its promise of continued extraordinary support, estimating the US economy to shrink by 6.5 per cent in 2020 and the unemployment rate to be at 9.3 per cent at year's end. Fed officials also flagged the need to keep the key interest rate near zero through at least 2022.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.4 per cent to 1,129.50 tonnes.

Palladium fell 0.9 per cent to $1,929.96 per ounce and silver declined 1.7 per cent to $17.95, while platinum rose 0.5 per cent to $836.38.