Fed's Rate Hold Supports Gold Prices Near $4,100

Gold prices continued their upward trend on Thursday, boosted by the Federal Reserve's decision to keep interest rates steady. As of 6:05 am IST, spot gold was up 0.2 per cent, or USD 6, at USD 4,071.89 an ounce.

The Fed's policy decision weighed heavily on the US dollar, which remained below the 101 level. A weaker dollar typically boosts gold prices by making the precious metal cheaper for holders of other currencies, thereby supporting global demand.

Investors are now awaiting key US inflation data later in the day, which could influence expectations for future Federal Reserve policy moves. Higher-than-expected inflation could strengthen gold's appeal as a hedge against rising prices, while softer inflation may reinforce expectations of policy easing in the coming months.