Gold and silver prices were muted today in Indian markets today amid subdued global cues. On MCX, gold futures were marginally higher at ₹47,137 per 10 gram while silver futures were flat at ₹61,724 per kg.  In global markets, gold was flat as the dollar hovered close to a one-year high against a basket of currencies amid expectations the Fed could soon start normalising policy. Spot gold was unchanged at $1,753.77 per ounce. 

Gold has struggled this year after hitting a record high of ₹56,200 last year amid a stronger US dollar and hopes of faster economic recovery amid vaccination drive. 

Global equity markets also retreated today as investors grew increasingly concerned about a growing energy crisis and spiking inflation.

“Some commodities have edged up amid worries that supply issues and as market player seek hedge against rising inflationary pressure. However, if risk sentiment continues to remain weak and US dollar strengthens further we may see some correction," Kotak Securities said in a note.

Though gold is seen as a hedge against inflation, Fed's tapering increase the opportunity cost of holding gold and thus decrease the allure of the yellow metal for investors. 

Among other precious metals, silver fell 0.2% to $22.52 per ounce, while platinum dropped 0.5% to $1,003.87.

Gold traders will be focusing on the US consumer price index data to be released on Wednesday. Analysts expect price pressures to remain elevated. 

Meanwhile, Goldman Sachs Group Inc. economists have cut forecasts for U.S. growth this year and next, blaming a delayed recovery in consumer spending.

Technically, above $1756 we can see $1771 on the upside while $1743 could continue to provide support, says Vidit Garg, director of MyGoldKart.

On silver, domestic brokerage Geojit said: “Inability to move past $23.10 expect choppy with weak bias for the day. A direct rise above recovery rallies are possible." (With Agency Inputs)