Gold Price Today: Yellow metal futures near Rs 48,200/10 grams; should you take positions now?

Globally, spot gold was up 0.2 percent at $1,785.5 per ounce. US futures of the yellow metal were up 0.1 percent at $1,785.9 per ounce.

Silver was up 0.3 percent at $22.2 per ounce.

: Should you invest in gold amid Omicron concerns?

"Gold has inched up as US inflation data has increased gold’s appeal as an inflation hedge. Also supporting the price are geopolitical tensions and persisting coronavirus (Omicron) concerns. However, the upside remains limited by expectations that Fed may fasten the pace of bond tapering at its upcoming meeting," said Ravindra Rao, CMT, EPAT, VP-Head Commodity Research at Kotak Securities.

Rao expects gold to remain rangebound ahead of a slew of central bank meetings due this week. The prospect of monetary tightening may keep the prices under pressure, he said.

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 0.2 percent near its 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 gained by 15 paise to 75.63 against the US currency on Monday, though surging oil prices and unabated foreign capital outflows dented the sentiment in the forex market.

On Dalal Street, benchmark indices Sensex and Nifty50 erased initial gains and looked set to end lower for a second straight day. Typically, gains in equities dent the safe-haven appeal of bullion and vice versa. (Catch latest stock market updates here)

Uncertainty over the emergence of Omicron has enhanced the safe-haven appeal of gold, according to Ravi Singh, Vice President and Head of Research at ShareIndia.

He suggests a buy zone near Rs 48,000 for a target of Rs 48,500, and a sell zone below Rs 47,900 for a target of Rs 47,500.

Volatility in bullion is expected to continue in December, according to Amit Khare, AVP-Research Commodities at Ganganagar Commodity. Technically, both gold and silver appear to be trading in an oversold zone, and the current levels are favourable for short-term investors.

He sees support for MCX gold at Rs 48,000 and Rs 47,800, and resistance at Rs 48,400, followed by Rs 48,600. For the white metal, he expects support at Rs 60,600 and Rs 60,000, and resistance at Rs 61,700 and Rs 62,100.