* Fed's Powell says continued fiscal and monetary support needed
* Fed says committed to low rates, using "full range of tools
* Silver eases from last session's multi-year high
* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (New throughout; updates prices, comments after Fed statement)
By Swati Verma
July 29 (Reuters) - Gold prices gained in volatile trade on Wednesday, nearing the last session's record peak at one point, after the U.S. Federal Reserve vowed to keep interest rates near zero as the rapid rise in coronavirus cases dampens hopes for an economic recovery.
Spot gold XAU= was up 0.5% at $1,969.16 per ounce by 4:20 p.m. EDT (2020 GMT), while U.S. gold futures GCv1 settled 0.5% higher at $1,953.4.
During Fed Chair Jerome Powell's press conference following the close of the U.S. central bank's two-day policy meeting, gold jumped as much as 1.1% to $1,980.31 an ounce, just below the record high of $1,980.57 scaled on Tuesday, but pared gains soon after.
"The gold price action around the Powell presser - up, down sharply, recovering - when the chair was careful and neutral, suggests a developing plurality of viewpoints at current levels in the market," said Tai Wong, head of base and precious metals derivatives trading at BMO. "That, after a long rally, indicates a higher probability of a short-term correction."
The current economic downturn is severe and continued fiscal and monetary support will be necessary for a recovery, Powell said, following the release of the U.S. central bank's latest policy statement. policymakers said they remain committed to using their "full range of tools" to support the economy and keeping interest rates near zero for as long as it takes for the economy to recover.
Massive stimulus packages to aid economies around the world reeling from pandemic-driven woes and a low interest rate environment have helped drive gold prices up nearly 30% so far this year.
"The fundamentals for gold have never been better," said Jeffrey Sica, founder of Circle Squared Alternative Investments. But, he said, gold is going to face resistance near the $2,000 level.
"You've a lot of people trading gold short-term now, so we are going to get some pullback just on what I would consider simple profit-taking since it's had such an incredible run year-to-date," Sica said.
In other metals, silver XAG= dropped 1.5% to $24.19 per ounce, platinum XPT= fell 1.6% to $932.69, and palladium XPD= slid 5.9% to $2,148.78.