Domestic gold and silver prices moved marginally lower on Tuesday tracking weakness in global benchmarks. However, weakness in the US dollar -- making precious metals more attractive for holders of other currencies -- kept the losses in check.

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At 9:17 am, Multi Commodity Exchange (MCX) gold futures for October delivery traded with a loss of Rs 46 or 0.1 percent at Rs 46,862 per 10 grams compared with their previous close of Rs 46,908 per 10 grams. MCX Silver December futures were at Rs 63,100 per kilogram, down by Rs 199 or 0.3 percent compared with the previous close of Rs 63,299.

A rebound on Dalal Street led by financial, automobile and pharmaceutical stocks aided investors' risk appetite, moving them away from safety bets such as bullion. The Nifty50 benchmark came within inches of its all-time high registered last week. Catch live market updates here

Globally, gold and silver rates were subdued on Tuesday as investors awaited data on US consumer prices due later in the day to better assess the timing of the Federal Reserve’s impending move to withdraw its ultra-supportive policy.

Spot gold was down 0.2 percent at $1,790.4 per ounce. US gold futures were also down 0.2 percent, at $1,791.65 an ounce. Silver was down 0.1 percent at $23.66 per ounce.

Ravindra Rao, CMT, EPAT, VP-Head Commodity Research at Kotak Securities, expects the yellow metal to move within the range of Rs 46,700-47,300 with a sideways bias on Tuesday.

"The October gold futures contract hit the lower Bollinger band near Rs 46,730 on Monday and witnessed a quick recovery. However, its price is still hovering below the mid-line suggesting a phase of correction," he said.

Rao sees key support for gold around Rs 46,700, followed by Rs 46,480. He expects resistance around Rs 47,300, and believes that only a close above Rs 47,300 would extend the rebound towards the next key resistance of Rs 47,600.

MCX gold is consolidating around Rs 47,000 level and trading within a key pivotal range, said Sandeep Matta, Founder, TRADEIT Investment Advisor.

"The lacklustre movement in gold continues. Spot gold is somehow managing to trade above the $1,790 per ounce mark in a stagflation setup. Taper talks gather pace making precious metal a non-happening commodity," Matta said.

The dollar index -- which gauges the greenback against six other currencies -- weakened 0.1 percent to 92.6 in early Asian trade, making gold and silver more attractive for those holding other currencies.

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The rupee weakened by 18 paise on Monday to settle at a more than two-week low of 73.68 against the US dollar, having moved between 73.63 and 73.73 for the day. It is down 0.8 percent so far in 2021.

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Manoj Kumar Jain, Director-Head of Commodity Research, Prithvi Finmart, expects both precious metals to remain volatile ahead of the release of the US consumer price data.

On MCX, gold futures find support at Rs 46,660-46,500 and meet resistance at Rs 47,100-47,330, he said. Jain recommends buying gold futures on dips to around Rs 46,700 for a target of Rs 47,100 with a stop loss at Rs 46,500.

Matta sees Rs 46,906 per 10 grams as a key level for MCX gold. He has pegged a buy zone above the Rs 46,915 level for a target of Rs 47,045-47,143, and a sell zone below Rs 46,900 for a target of Rs 46,775-46,625.