Indian gold futures moved higher on Thursday tracking global benchmarks. A lacklustre trend in equities boosted the demand for safe havens, though strength in the dollar overseas limited the yellow metal's appeal for holders of other currencies.

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At noon, MCX gold futures were up 0.2 percent at Rs 48,129 per 10 grams, having risen to as high as Rs 48,156 earlier in the day.

MCX silver futures were up 0.1 percent at Rs 61,694 per kilogram. The contract had gained to as high as Rs 61,730 earlier on Thursday.

Globally, spot gold rose 0.1 percent to $1,785 per ounce. US gold futures were flat at $1,785.7 per ounce.

Spot silver was down 0.2 percent at $22.4 per ounce.

Gold has benefited from near-zero interest rates introduced during the COVID-19 pandemic as they reduce bullion’s opportunity cost.

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The dollar index - which measures the greenback against six other currencies - was up 0.1 percent at 96 at the last count, having risen as much as 0.2 percent earlier in the day.

Back home, the rupee traded in a tight range after opening with a mild gain at 75.45 against the greenback as against a two-month low of 75.5 registered the previous day.

On Dalal Street, benchmark indices Sensex and Nifty50 took a breather amid choppy trade after two back-to-back sessions of significant gains. Catch latest market updates here

Typically, gains in equities dent the safe-haven appeal of bullion, and vice versa.

Is it a good time to take positions now?

The Omicron variant of COVID-19 is causing uncertainty in the global markets, said Ravi Singh, Vice President and Head of Research at ShareIndia.

"Most of the developed economies are facing high inflation and slow economic recoveries. Gold prices, in this scenario, will find support as the US may prefer to delay its decision on tapering for the time being," he said.

Singh suggests a buy zone above Rs 48,100 for a target of Rs 48,500, and a sell zone below Rs 47,700 for a target of 47,500.

Support vs resistance

According to Amit Khare, AVP-Research Commodities at Ganganagar Commodity, MCX gold futures have support at Rs 47,850 and Rs 47,600, and face resistance at Rs 48,300 and Rs 48,500.

For silver, he sees support at Rs 61,300 and Rs 60,600, and ressitance at Rs 62,100 and Rs 62,500.

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Technically, gold is at a juncture where a breakout is the only way forward for clear direction, according to Vidit Garg, Director at MyGoldKart. "Till then, we can play a range of $1,774-1,796 (spot gold). A breakout below 1,760 or 1,800 will provide further direction," he said.