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The recent downward pressure in Indian equity markets coupled with the concerns emanating from the Omicron variant globally is expected to keep gold prices high in the near-term.

In addition, pent-up demand for the yellow metal for marriages and a relative weakness in the value of rupee will also somewhat keep its fundamentals strong, analysts said.

Last week, prices of physical gold rose by Rs 800 to nearly Rs 49,000 per 10 gm, according to Indian Bullion and Jewellers Association.

On Tuesday, its prices largely remained range-bound.

In the near-term, the resistance for gold is seen at Rs 50,000 per 10 gm, with downside risks mostly limited, said Ajay Kedia, head of Mumbai-based Kedia Advisory.

However, Kedia said a major support is seen at Rs 46,800.

"Renewed Covid-19 concerns coming out of Omicron, as it spread to several countries, Turkish currency Lira's meltdown, and high valuations in equities will support gold prices," Kedia said.

For international gold, support and resistance are forecast at $1,798 and $1,834 per ounce for the next one-month period, respectively, Kedia said.

At present, international benchmark gold is trading at around $1,797 per ounce, data showed.

Some portion of the FII's recent sell-off from domestic equities may potentially shift towards safe-haven assets such as gold, other analysts said.

According to Manoj Kumar Jain, Director and Head of Commodity Research at Prithvi Finmart, the rise in Omicron cases would support gold prices going ahead.

"Global gold has support at $1,784-1,772 per ounce, and resistance at $1,810-1,822 per ounce," Jain said.

For further cues, investors would have to keep a sharp eye on the dollar index, inflation, and US Fed's monetary policy measures, analysts said.

This week, traders should go for the ‘Buy-on-Dips' opportunity in MCX (Multi Commodity Exchange of India) benchmark gold future contracts with a target of Rs 48,900 per 10 gm, said Kshitij Purohit, Lead, International & Commodity, at CapitalVia.

On the MCX at 7.15 p.m., gold traded at Rs 48,217 per 10 gm.

"The investors are (now) more focused on US inflation, which makes it play its traditional role as a hedge against that. However, stronger US Fed action could be negative for bullions," Purohit said.

In a report, Mukesh Kumar, Senior Analyst at World Gold Council's India arm, said that retail demand for the yellow metal may weaken as the month progresses, with end of year holidays and fewer auspicious wedding dates.

"We anticipate that official imports may remain flat or lower. Gold price volatility, healthy bullion inventory levels and concern over the new Omicron variant may dissuade trade from increasing imports further," Kumar said in the report.