Mumbai / Chennai: Gold rates across India saw a marginal spurt after a crucial announcement from the US Federal Chief Jerome Powell.
US Spot Gold rallied up by 0.9 percent to levels of $1,818 per troy ounce. MCX Gold futures too cruised upwards by a similar margin on Thursday.
On Wednesday, Powell assured the markets about the US economy. On the aspect of rising cases of the Delta virus strain of Coronavirus infections, the Governor said that the new virus strain posed little threat to the economy.
Ahead of the crucial market, bullion markets were hopeful about the US Fed softening its stance towards the bond borrowing program and guidance on inflation containing measures.
Powell hinted that monthly purchases of mortgage-backed securities and Treasuries may be reduced. That in the likelihood of a growth in Jobs. The US Fed purchases $120 billion of these bonds every month to spur more borrowing and spending.
On the aspect of containing inflation, Powell reiterated that the jobs data could help influence the course ahead. The US Fed would like to see the US economy moving closer to "substantial further progress," before reducing the bond buying program.
The continuation of the bond buying program and no tapering in interest rates have been perceived by traders as positive cues to accumulate Gold.
What has also worked in favour of Gold is the slip in Dollar Index which has been gaining since the last month. On Thursday, slipped by 0.19 percent to 92.15. The Dollar Index compares the Dollar against a basket of reserve currencies.
The cues were reflective in the London Gold fix price (LBMA). For Thursday, LBMA affixed the price at $1,809. A day ago, it was fixed at $1,796.60.
Kshitij Purohit, the lead analyst for International and Commodity with CapitalVia in a statement said, "MCX Gold future resumed higher at 47,720, inclined by almost 0.45% from previous closing, trading with marginally bullish trend over the support of 15-SMA (Simple Moving Average) of hourly chart placed at 47626. The key resistance is at 47930."
Domestic jewellers and associations across India have already affixed marginally higher rates for Thursday.