If it was fear that drove up gold earlier, it is fear again that is doing the reverse. Fears that the US could end programmes to buy bonds and pump in more money to buoy economy is denting gold.
Gold had run up to record highs on fears that such programmes to buy bonds and buoy economy will lead to inflation.
Talk of the programme ending and also the reported courage of investor to move to riskier assets is beginning to tell on gold.
All these could have an effect on the Indian market too.
On Thursday, gold could plunge further in the domestic market with prices of the yellow metal nosediving to a seven-month low in the global market.
A cause for concern is that gold is breaching key supports while heading south.
In early trade at Singapore, spot gold slipped to $1,560.66 an ounce, while gold for delivery in April fell to $1,559.70.
In the domestic market on Wednesday, gold for jewellery (99.5% purity) declined to Rs 29, 475 for gm and pure gold (99.9%) purity to Rs 29,610.
Currency movements could also sway the movements with any rise in the rupee likely to compound the things for the precious metals since a rising rupee will make imports of commodities such as gold, crude oil and vegetable oils cheaper.
The oils and oilseeds complex could see some change of fortune with the benchmark Chicago Board of Trade (CBOT) soyabean gaining overnight. Soyabean gained on demand from China that is back in the market after its lunar New Year.
Soyabean May contracts on CBOT delivery was up $14.59, while on Bursa Malaysia Derivatives Exchange, crude palm oil May contracts were down on Wednesday evening at 2,565 rinngit ($828) a tonne.
The grains complex could also see the bulls active with wheat and corn (industrial maize) gaining on CBOT.
Wheat for delivery in May was up on CBOT at $7.45 a bushel, while corn for delivery the same month rose to $6.96.
Crude oil could come under pressure with stocks rising in the US. Brent crude April contracts dropped to $114.99 a barrel, while NYMEX crude contracts for the same month were down at $94.67.
This could also seen natural rubber under pressure since its alternative synthetic rubber derived from crude oil will likely rule low.