Gold is likely to remain under pressure on hopes that the economy is recovering and the US Federal Reserve will begun winding up its $85 billion-a-month stimulus programme.
An indication on the Fed’s move is likely on September 18, while a couple of data later in the day could hold further key to the precious metals’ direction.
But indications are that the prospects for the yellow metal are bearish with Thomson Reuters GFMS projecting a further contraction in prices next year.
For this year, it sees gold demand down at 2,237 tonnes against last year’s 2,533 tonnes.
Holdings in world’s biggest gold exchange-traded fund, SPDR Trust, remain unchanged at 917.13 tonnes.
Industrial production, jobs data
Later in the day, the Euro Zone industrial production data would be released, while the US will come out with its weekly jobs data claims that perhaps could show a drop in joblessness.
In early Asian trade, spot gold in Singapore ruled at 1,361.83 an ounce and gold futures maturing in December at 1,360.30.
Spot gold, gold futures
In the domestic market on Wednesday, gold for jewellery (99.5 per cent purity) dropped to Rs 30,280 for 10 gm and pure gold (99.9 per cent purity) to Rs 30,420.
On MCX, gold October contracts could drop below Rs 30,000.
Rupee Vs dollar
In the Indian context, any further recovery of the rupee could add to pressure on gold since a stronger Indian currency against the dollar makes import of the yellow metal, crude oil and vegetable oils cheaper.
US crude stockpiles
Crude oil could firm up as stockpiles in the US dropped to a one-and-a-half year low.
The easing of the Syrian crisis has allayed fears of supply in the West Asia region and it could dampen any sharp rise.
Brent crude futures maturing in October were up at $111.48 a barrel and West Texas Intermediate crude futures maturing the same month at $107.62.
The oils and oilseeds complex could head north after being crushed over the last two sessions.
Soyabean crop estimate
Also, speculation that the US Department of Agriculture could cut its crop estimate for soyabean, due later in the day, following hot weather last month will support an uptrend. One of the hottest August that the US has had in decades and late plantings could affect soyabean yields.
Chicago Board of Trade soyabean futures due for delivery in November were up at $13.62 a bushel. Crude palm oil on Bursa Malaysia Derivatives Exchange for delivery the same month opened higher at 2,340 ringgit or $718 a tonne.
US corn crop
The grains complex could ease on expectations that the US corn crop will be higher than last year and perhaps be a record one. This is despite speculation that the USDA will lower its estimates from its earlier projections. Wheat could also follow suit in sympathy.
CBOT corn December contracts ruled lower at $4.70 a bushel and wheat at $6.46 a bushel.