Indian gold futures were steady on Monday. Strength in the US dollar put pressure on the yellow metal, though weakness in equities boosted the safe-haven appeal of precious metals. All eyes were on a slew of central bank meetings due this week for clues on interest rates and withdrawal of pandemic-era support in the coming months.

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At 1:00 pm, MCX gold futures were up by Rs 17 at Rs 48,320 per 10 grams. The February contract had moved within a Rs 110 range, between Rs 48,251 and Rs 48,361, so far during the session.

MCX February silver futures were down by Rs 12 at Rs 61,568 per kilogram.

Globally, spot gold was down 0.2 percent at $1,785.7 per ounce. Silver was down 0.4 percent at $22.2 per ounce.

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The dollar index -which measures the greenback against six other currencies - was up 0.1 percent at 96.4 near the day's high at the last count. Strength in the US dollar makes precious metals more expensive for holders of other currencies, and vice versa.

Back home, the rupee declined by 17 paise against the US dollar to 75.95, pressured by unabated foreign capital outflows.

On Dalal Street, benchmark indices Sensex and Nifty50 fell tracking weakness across global markets amid concerns about the Omicron variant of COVID-19. Typically, gains in equities dent the safe-haven appeal of bullion and vice versa. (Catch latest stock market updates here)

Is it a good time to take positions now?

"Investors await the outcome of the FOMC meeting. It is expected that Fed may take a decision on bond tapering and rate hike to curb rising inflation, the way the Fed Chairman had signalled in his testimony before the Senate," said Ravi Singh, Vice President and Head of Research at ShareIndia.

However, uncertainty engulfing the markets over the Omicron may push the Fed to defer the decision till its next meeting, he added.

Singh suggests a buy zone above Rs 48,350 for a target of Rs 48,650 and a sell zone below Rs 48,000 for a target of Rs 47,700.

Technical view

The current gold and silver prices are best for short-term investors, according to Amit Khare, AVP-Research Commodities at Ganganagar Commodity.

Short-term investors are advised to create fresh longs on small dips, he said.

He sees support for MCX gold at Rs 48,150 and Rs 48,000, and resistance at Rs 48,430, followed by Rs 48,600. For the white metal, he expects support at Rs 61,200 and Rs 60,600, and resistance at Rs 61,900 and Rs 62,100.

First Published:Dec 14, 2021 1:39 PM IST