"The dollar has rebounded from Wednesday's low, that's putting some pressure on precious metals. Low liquidity due to Chinese new year holiday is also weighing on the prices," said DailyFX strategist
Mounting coronavirus cases and caution ahead of the U.S. Federal Reserve's policy meeting this week also dulled appetite for risk
They are joining borrowers globally that have been rushing to credit markets, after yields crashed following cash-boosting measures
Gold inched higher on Wednesday as the dollar eased, while investors weighed a top US Republican leader's decision to postpone a vote on increased pandemic relief payments
Subdued global markets and a flat rupee capped the gains, analysts said
Higher crude oil prices also put pressure on the Indian currency
Two Goldman Sachs Group Inc money-market funds, whipsawed in March by billions of dollars of investor withdrawals, have steadily amassed a liquidity cushion much larger than rivals
The precious metal had stormed almost $40 higher at one point to reach $1,980 an ounce, only for a wave of selling to slap it back to $1,940 in wild trade
A thinly traded market is compounding the problem for the rupee
"The central bank may have been intervening in these markets in small measures in the past too, but Friday's action was quite loud," said a senior currency dealer requesting anonymity.
The Sensex fell nearly 2,000 points, as foreign investors liquidated their investments for safe haven assets such as US bonds. As prices of bonds rise, yields fall.
Volatility continued to grip the markets amid investor concerns over the global coronavirus outbreak
The S&P index recorded two new 52-week highs and 135 new lows, while the Nasdaq recorded eight new highs and 415 new lows.
The pound fluctuated close to its strongest level since May
During the reporting month, the Reserve Bank had purchased $1.592 billion but sold $1.685 billion in the spot market
Inside the White House, hawks have been pushing for a direct intervention in currency markets by the Treasury by pointing to a slowdown in US manufacturing
China has sought to elevate the role of its currency, the renminbi, to reflect its stature as a world power
Total allocated reserves increased to $10.71 trillion in the third quarter from $10.51 trillion in the previous quarter
The US exerts unprecedented control over global economic activity
The strong greenback hasn't led to a shortage. Yet