Gold prices took an upswing on Thursday, beating the US$ 1,300 per oz mark, reports say. The price was at a six-week high in dollar terms.

Reports note that the increase in prices is a result of the US Fed deferring the proposed rate hike. The government maintained the interest rates despite emphasising it would implement a tighter monetary policy with at least two rates hikes during the year, reports add.

The US Fed chairperson Janet Yellen mentioned that along with the inflation staying below the 2% long-term target level, rise in household spending and housing sector demand, the job gains have reduced and business fixed investment has been soft.

The Fed expects only a gradual increase in federal funds rate and noted the for a while rates could remain below the expected levels to be in the longer run. The flux of circumstances in the world is also likely to induce the investor sentiment in gold.