Gold price today: Yellow metal futures edge higher to Rs 47,850/10 gm; good time to take positions?

The short-term momentum has turned positive for gold, according to Ravindra Rao, CMT , EPAT, VP-Head Commodity Research at Kotak Securities. "Any dip towards support would attract buying for a target of Rs 48,250. Only a close below Rs 47,600 would negate the bullish view," he said. 

The dollar index - which gauges the greenback against six other currencies - was down 0.1 percent at 96.1 at the last count. Weakness in the greenback makes precious metals more attractive for holders of other currencies.

Market participants globally weighed the prospects of early key rate hikes by the Federal Reserve and other major central banks.

The rupee gained by 10 paise against the US dollar to 74.48 on Wednesday.

Ravi Singh, Vice President and Head of Research at ShareIndia, expects gold to continue its outperformance in the coming days. "Gold futures may move towards Rs 49,000. Any correction towards the recent support of Rs 47,500 may be utilised to average the positions," he said. 

Rao suggests buying MCX gold February futures at Rs 47,800 for a target of Rs 48,250 with a stop loss at Rs 47,600. For silver, he suggests trading in the range of Rs 61,200-62,700.

Singh sees a buy zone in gold above Rs 48,100 for a target of Rs 48,300, and a sell zone below Rs 47,800 for a target of Rs 47,600.