Gold prices in Thursday's trade (April 29, 2021) gained in line with international markets after the US Federal Reserve hold on to interest rates near zero. On the MCX, gold future prices for June delivery gained Rs. 270 to Rs. 47270 per 10gm.
Spot gold gained as much as 2 percent to $1784.94 per ounce. Also, gold futures surged 0.6 percent to $1784.5 per ounce.
Federal US Reserve had an improved economic view of the country and also iterated that inflation shall be transitory. Further, the price increase would not present the persistent problem that would force the central bank to begin increasing interest rates sooner than expected.
Gold in the situation of massive global stimulus by global central banks gains as gold serves as an inflationary hedge.
"In the short term, gold's major headwind would be renewed increases in the longer-term yields, notable the 10-year rate on the back of fresh strength in U.S. economic numbers," analyst O'Connell StoneX analyst Rhona O'Connell said.