Gold price as on April 12, 2022: The yellow metal was trading higher on MCX
Gold prices as on April 12, 2022: The yellow metal was higher on MCX as gold June futures were trading higher by Rs 376 or 0.7 per cent at Rs 52,560 per 10 grams as against the previous Rs 52,179 per 10 grams.
Silver May futures were trading at Rs 767 or 1.14 per cent at Rs 68,061 per kg.
Globally too, gold prices edged higher as appetite for risk weakened ahead of US inflation data, which could support the Federal Reserve’s aggressive policy stance to contain rising price pressures, Reuters reported.
Earlier on Tuesday, gold prices declined in international markets as Treasury yields and the dollar rose ahead of US inflation data.
Later, spot gold rose 0.3 per cent to $1,958.61 an ounce, having hit a nearly one-month high on Monday. US gold futures ended 0.8 per cent higher at $1,962.90.
Nicolas Frappell, global general manager of ABC Bullion, said gold was bidding on weak equities and geopolitical tensions while facing headwinds from weak crude, a firmer dollar and rising real yields.
The dollar index was up above 100, testing last week’s two-year high of 100.19, while the benchmark 10-year Treasury yield hit its highest level since December 2018.
A stronger dollar makes gold less attractive to holders of other currencies, while higher US interest rates and yields increase the opportunity cost of holding bullion, which is also used as a hedge against inflationary pressures.