Gold prices jumped on Thursday as the US dollar eased, while investors shifted their focus away from the US Federal Reserve to other key central bank meetings.

The Fed said that it would end its pandemic-era bond purchases in March and paved the way for three quarter-percentage-point interest rate hikes by the end of 2022.

Gold futures on MCX rallied 0.51 per cent or Rs 244 to Rs 48,331 per 10 grams. Silver futures rose 1.98 per cent or Rs 1,195 at Rs 61,403 per kg.

Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of holding bullion. Fears over the Omicron coronavirus variant, meanwhile, weighed on investor sentiment towards riskier assets.

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