Gold fell about 1 percent on Friday, posting its biggest weekly loss in seven weeks, as renewed anxiety about the U.S. Federal Reserve could scale back its bond-buying stimulus prompted bullion investors to reduce positions. Gold prices fell sharply in mid-April - about $200 an ounce in two days - prompting strong pent-up demand in Asia for jewellery, bars and coins.
SPDR Gold Trust, the biggest gold-backed ETF, has seen outflows of over $20 billion this year, weighing heavily on global prices. Holdings of the fund are near four-year lows.
Import duty on gold has been hiked by the government in third revision this year in a bid to curb the surging imports and burgeoning CAD.