BENGALURU: Gold prices rose on Tuesday, as rising inflation fears dulled risk appetite and boosted demand for the safe-haven metal, although an advancing US dollar limited bullion’s gains. Spot gold rose 0.3 percent to $1,759.31 per ounce by 13:44 p.m. EDT (1744 GMT), while US gold futures settled 0.2 percent higher at $1,759.3. A global energy crunch has threatened economic outlook and fanned inflation fears, driving some investors toward safer assets. “We see undertones of support coming from the general idea that inflationary pressures are going to be enough to hold gold up in the midst of an environment where we see the Federal Reserve slowly moving toward reducing asset purchases,” said David Meger, director of metals trading at High Ridge Futures. But overall, the dollar is pulling at the heels of the gold market and limiting its upside, Meger said. Gold is traditionally seen as an inflation hedge. However, reduced central bank stimulus and interest rate hikes tend to push government bond yields up, translating into a higher opportunity cost for holding gold that pays no interest. “There’s more risk aversion in the market and gold is benefiting from that, coupled with concerns about inflation and cooling of the global economy,” Commerzbank analyst Daniel Briesemann said. If stagflation talks come to the fore increasingly, gold could clock $1,900 by year-end as interest rates should remain relatively low even if the Fed starts tapering, Briesemann said. Spot silver fell 0.2 percent to $22.52 per ounce and platinum was 0.1 percent higher at $1,009.37. Palladium slid 2.5 percent to $2,058.71.