Gold prices declined on Friday, remaining on track for a second consecutive weekly loss as rising oil prices and mounting concerns over inflation and potential interest rate hikes pressured sentiment. Spot gold fell 0.2 percent to US$4534.29 per ounce as of 0047, bringing its total weekly decline to around 0.1 percent. US gold futures for June delivery also eased 0.1 percent to US$4535.60. Among other precious metals, silver declined 0.5 percent to US$76.32 per ounce, platinum slipped 0.3 percent to US$1959.20, while palladium remained unchanged at US$1377.89 per ounce. Spot gold prices had earlier dropped to a near two-month low on Wednesday amid higher Treasury yields and a stronger dollar. A stronger dollar makes bullion more expensive for holders of other currencies, while higher bond yields increase the opportunity cost of holding the non-yielding metal.

Gold continued to trade at a substantial discount in India this week as price volatility weighed heavily on demand, while premiums in China moderated slightly. Dealers in India offered discounts of up to US$78 an ounce over official domestic prices, inclusive of 15% import and 3% sales levies, compared to last week’s record discounts of up to US$207 an ounce. “Retail buyers are experiencing some confusion due to the recent price fluctuations following the government’s increase in import duty earlier this month. Most of them are just waiting for prices to settle down,” said a jeweller based in Kolkata. Earlier this month, India increased import tariffs on gold and silver to 15% from 6% as part of broader measures aimed at reducing overseas purchases of precious metals and easing pressure on foreign exchange reserves caused by elevated oil prices.

Jewellers in India have also remained cautious about building inventories as the wedding season nears its end and uncertainty surrounding retail demand persists, according to a bullion dealer in Mumbai associated with a private bank. In China, the world’s leading consumer market, bullion traded at premiums ranging between US$10 and US$20 per ounce above global benchmark prices, slightly lower than the previous week’s premiums of US$15 to US$20. “Fed rate-hike anxiety, rising bond yields, and dollar strength continue to weigh on gold in China,” stated Bernard Sin, regional director of Greater China at MKS PAMP. He added that in the near term, physical demand remains caught between safe-haven buying driven by geopolitical tensions and policy-related challenges.

Across other Asian markets, gold traded at varying premiums and discounts. In Hong Kong, gold was sold at par to premiums of US$2 per ounce, while in Japan it traded at a discount of US$0.25 per ounce. In Singapore, bullion transactions took place at premiums ranging from US$1 to US$3 per ounce. Market participants continue to monitor global monetary policy signals, geopolitical developments, and fluctuations in energy prices, all of which are influencing sentiment in the precious metals market.