Oil prices have more than halved in the past two years after Saudi Arabia raised output steeply in an attempt to drive higher-cost producers such as U.S. shale firms out of the market.
Apart from global oil prices, the value of the rupee as well as the margins of oil marketing companies and the various government levies determine the final price of petrol and diesel price in India.
Analysts had been expecting lower energy costs and firm prices to help the company to post better margins and higher revenues in the coming quarters.
Besides, a decline in demand from jewellers in view of the prevailing cash crunch weighed heavy on gold prices, according to traders.
Spot gold was down 0.3 percent at $1,167.11 an ounce by 0245 GMT, and was set for a weekly decline of about 0.8 percent.
Brent and U.S. benchmarks climbed on Thursday after the former secretary general of the Organization of the Petroleum Exporting Countries made comments supportive of non-member production cuts.
So far, the government has come out with six tranches ofthe sovereign gold bonds, which provideinvestors a choice to diversify portfolio without the need tobuy the metal in physical form.
Finance Minister Arun Jaitley announced that Indian Railways passengers making digital payments will get accidental insurance cover of Rs 10 lakh and a 5 per cent discount on digital payments for railway facilities like catering and retiring rooms.
The US dollar index fell as Treasury bond yields eased and investors eyed next week's Federal Reserve meeting. A weak dollar makes dollar-denominated oil less expensive for importing countries.
Apart from a firm global trend, mild buying by jewellers to meet ongoing wedding season demand at domestic spot market mainly attributed the recovery in gold prices, according to traders.
Spot gold has so far fallen more than 12 percent from its post-U.S. election peak of $1,337.40 on Nov. 9.
The lobby group has also urged the government to provide specialconsideration on cashless purchase of jewellery and to removeexisting restrictive measures on cashless jewellery buying,
Market analysts said tepid demand from jewellers and retailers at the domestic spot market and a weak trend in the global market weighed heavy on the precious metals.
Oil prices shot up as much as 19 percent after the Organization of the Petroleum Exporting Countries (OPEC) and Russia last week announced they would jointly cut production next year in an attempt to prop up markets.
A stronger dollar, spiking bond yields and rising optimism over the outlook for financial markets has hobbled gold, while the traditional saviours of a falling market, Indian and Chinese gold buyers, are hamstrung by cash controls and import curbs.
The government had informed Parliament that 67.4 kilograms of gold was misplaced from the vaults of Customs department at the Indira Gandhi International Airport this fiscal year.
Reduced offtake by jewellers owing to a considerable fall in demand at the domestic spot market in view of the prevailing cash crunch following demonetisation of high-value notes hurt sentiment.