Spot gold was down 0.8% to $1,731.38 per ounce by 1052 GMT
This was also driven by foreign fund inflows
Gold slipped as investors opted for safe-haven assets such as the dollar and bonds after Turkey's abrupt decision to replace central bank head with a critic of high interest rates sparked uncertainty
The Reserve Bank of India (RBI) continued to remain net buyer of the US dollar in January
The rupee ended on a flat note against the US dollar on Friday amid a firm trend in domestic equity markets
Gold prices fell as the dollar held onto its gains from the previous session on the back of rising US Treasury yields, while the Fed's forecast of a strong economic rebound further pressured the metal
Brent futures fell $2.65, or 3.9%, to $65.35 a barrel
Reserves for both countries have mostly flattened out this year
Gold gains for third day as bond yields, dollar retreat
US yields recovered on Wednesday, reducing the appeal of holding gold, while the dollar also bounced back
Spot gold rose 2.1% to $1,716.11 per ounce
This came on the back of a rally in domestic stocks and the greenback retreating from three-month highs in global markets
Dollar-denominated oil prices typically fall when the greenback strengthens since the commodity becomes more expensive for buyers paying in other currencies
The reserves increased for the second consecutive week
Risk aversion in the global markets weighed on the Rupee
The Rupee was weighed down by a rebound in the US dollar and muted domestic equities
Progress on the $1.9 trn U.S. stimulus bill has offered little respite, as higher yields have threatened gold's appeal as an inflation hedge by increasing the opportunity cost of holding bullion
In November 2020, it was net buyer of the US dollar after it had purchased USD 14.289 billion and sold USD 4.028 billion
Brent crude futures for April, which expire on Friday, fell 74 cents, or 1.1%, to $66.14 a barrel
Brent crude futures for April, which expire on Friday, fell 86 cents, or 1.3%, to $66.02 a barrel