Domestic gold and silver prices rose on Wednesday as equities took a breather following a record spree that lasted a few days. Weakness in the dollar provided some relief to holders of other currencies, boosting the yellow metal's appeal.

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At 12:15 pm, gold December futures on MCX were up by Rs 125 or 0.3 percent at Rs 47,405 per 10 grams. The December contract for silver was up by Rs 202 or 0.3 percent at Rs 64,652 per kilogram.

Globally, gold and silver rates rose though rising US bond yields and optimism on corporate earnings kept the upside in check.

Spot gold was last seen trading 0.4 percent higher at $1,776.6 per ounce. US gold futures were also up 0.4 percent, at $1,776.6 per ounce. Silver was up 0.8 percent at $23.8 per ounce.

The 10-year US benchmark Treasury yield rose to its highest since May 20, raising the opportunity cost of holding non-yielding bullion.

Analysts globally awaited more quarterly earnings reports to assess the pace of recovery from the pandemic lows.

Gold is often considered a hedge against inflation, though reduced stimulus and interest rate hikes push government bond yields up.

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Back home, the rupee appreciated to as high as 75.09 against the US dollar, as against its previous close of 75.35.

The dollar index -- which measures the greenback against six other currencies -- was flat, having declined as much as 0.1 percent earlier on Wednesday.

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On Dalal Street, benchmark indices Sensex and Nifty50 looked fatigued for a second straight day, down half a percent each in afternoon deals, having risen for the previous seven trading sessions in a row. Losses in automobile, FMCG, metal and consumer durable stocks dragged the market lower. Catch latest market updates here

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

Should you take positions in gold and silver now?

Both precious metals are expected to remain volatile, with the global benchmark for the yellow metal seen holding key support at $1,750 per ounce, said Manoj Kumar Jain, Director-Head of Commodity Research at Prithvi Finmart.

MCX gold futures have support at Rs 47,050-46,800 and resistance at Rs 47,550-47,770. For silver, support is expected at Rs 63,900-63,300 and resistance at Rs 64,800-65,500, he said.

Jain recommends buying gold futures around Rs 47,100 for a target of Rs 47,550 with a stop loss at Rs 46,880.

Ravi Singh, Vice President and Head of Research at ShareIndia, expects gold to trade sideways to up in the coming week. He sees support for MCX gold futures at Rs 46,900 and resistance at Rs 47,650.

He sees levels above Rs 47,300 as a buy zone for a target of Rs 47,650, and below Rs 46,900 as a sell zone for a target of Rs 46,600.

(Edited by : Sandeep Singh)