* Inflation may take gold higher in the long run – Analyst
* US CPI, Fed minutes due on Wednesday
* Dollar dragging on gold’s heels – Analyst (Update Price)
October 12 (Businesshala) – Gold prices edged higher on Tuesday, as rising inflation fears dampened risk appetite and boosted demand for the safe-haven metal, although a rising U.S. dollar rallied against bullion. profit limited.
Spot gold was up 0.3% at $1,759.31 an ounce at 13:44 a.m. EDT (1744 GMT), while US gold futures were up 0.2% at $1,759.3.
A global energy crisis has jeopardized the economic outlook and fueled inflationary fears, prompting some investors to turn to safer assets.
David Meager, director of metals, said, “We see undertakings supported by the general view that inflationary pressures will be enough to hold gold in the midst of an environment where we see the Federal Reserve gradually reducing asset purchases.” Moving on.” Trading on High Ridge Futures.
But overall, the dollar is pulling on the heels of the gold market and has limited its upside, Meiger said.
Gold has traditionally been seen as an inflation hedge. However, lower central bank incentives and higher interest rates boost government bond yields, which translates into a higher opportunity cost for holding no-interest gold.
“There is a higher risk in the market and gold is benefiting from this, as well as concerns about inflation and the cooling of the global economy,” said Daniel Breesemann, analyst at Commerzbank.
If inflation-rate conversations unfold quickly, gold could reach $1,900 by the end of the year as interest rates remain relatively low, even if the Fed begins tapering off, Briseman said.
The focus is on minutes from the Fed’s September 21-22 policy meeting and the consumer price index on Wednesday.
Spot silver fell 0.2% to $22.52 an ounce and platinum rose 0.1% to $1,009.37.
Palladium slipped 2.5% to $2,058.71. (Reporting by Bharat Govind Gautam and Arundhati Sarkar in Bengaluru; Editing by Shinjini Ganguly and Devika Shyamnath)