Union Budget in India, US Federal reserve meeting and NCLT vedict on Essar Steel bankruptcy case are the major things to watch out for.
Spot gold had dropped 0.3 percent to USD 1,244.93 per ounce by 0034 GMT. The metal hit its highest since November 11 at USD 1,263.80 on February 27.
New York Fed President William Dudley, among the most influential US central bankers, said on CNN that the case for tightening monetary policy "has become a lot more compelling" since the election of President Donald Trump and a Republican-controlled Congress.
A total of 13 of 21 primary dealers, brokerages that deal directly with the Federal Reserve, say the Fed will next raise rates in the first quarter, after it raised the range of its benchmark interest rate by a quarter of a percentage point to between 0.25 percent and 0.50 percent on Wednesday.
Nipun Mehta, Founder and CEO of Blue Ocean Capital Advisors says the Fed may hike rates from 15 basis points to 25 basis points as far as domestic markets are concerned.
Indranil Sengupta, India Chief Economist, Bank of America-Merrill Lynch, says the rupee could appreciate to 65 levels versus the dollar by March 2016.
Indian shares are likely to open in the red, though any losses will likely be capped and may be reversed later, amid mixed trading in Asian markets and after Wall Street closed in the green overnight.
Michael Every, Head of Markets Research, Asia-Pacific, Rabobank, outlined his view on what could happen if the Federal Reserve hikes interest rates for the first time in nearly a decade this week