Gold futures on the COMEX division of the New York Mercantile Exchange fell slightly Friday, under pressure from an Indian proposal to double the country's import duties on gold.
The most active gold contract for April delivery decreased 3.7 dollars, or 0.22 percent, to settle at 1,655.8 U.S. dollars per ounce. Gold has lost 3.3 percent for the whole week.
The Indian government's proposed budget which aims to increase custom duties for gold, was seen as a negative force within the market. If the Indian budget were to take effect, customs duties would double from 2 to 4 percent on standard gold, and 5 to 10 percent for non-standard gold.
According to India's finance minister, imports of gold and other precious metals are one of the primary reasons for the country's current accounts deficit, thus the proposed reaction.
Analysts said recent bearish atmosphere in the gold market in the wake of the Federal Reserve's optimism over economy and news from India seemed to overweigh supportive forces for gold such as a weaker dollar and rising price of crude oil.
Silver for May delivery decreased 12.2 cents, or 0.37 percent, to close at 32.604 dollars per ounce. Platinum for April delivery shed 8.4 dollars, or 0.5 percent, to 1,675.5 dollars per ounce.