Gold prices on April 12, 2022: Yellow metal rates were higher on the MCX, as gold June futures traded at Rs 376 or 0.7 per cent at Rs 52,560 per 10 grams compared to the previous close of Rs 52,179 per 10 grams.
Silver May futures were trading at Rs 767 or 1.14 percent at Rs 68,061 per kg.
Gold prices also rose globally as risk appetite weakened ahead of U.S. inflation data that could support the Federal Reserve’s aggressive policy stance to contain rising price pressures, Reuters reported.
Earlier on Tuesday, gold prices had initially fallen in international markets as Treasury yields and the dollar outperformed U.S. inflation data.
Later, spot gold rose 0.3 percent to $ 1,958.61 per ounce, after hitting its highest in nearly a month on Monday. U.S. gold futures rose 0.8 percent at $ 1,962.90.
ABC Bullion’s global general manager, Nicholas Frappell, said that gold is catching on to weaker stocks and geopolitical tensions, while the opposite of the weakening of the crude, raises a firmer dollar and is really rising.
The dollar index was back above 100, testing last week nearly two years high of 100.19, while the benchmark 10-year Treasury yield rose to its highest since December 2018.
A stronger dollar makes gold less attractive to other currency holders, while higher US interest rates and yields increase the chance cost of holding bullion, which is also used as a hedge against inflationary pressures.