Gold for Feb delivery on the MCX was trading down Rs 29, at Rs 29,710. Gold in the international market was also marginally down at $1262.
On Wednesday, the US Federal Reserve said that it would be reducing its bond purchase programme by $10 billion to $65 billion each month.
The reduction in the bond purchase programme also results in less liquidity, which is not good for asset classes like equities and gold.
In 2013, a lot of liquidity was unleashed by the US Federal Reserve and a lot of this money found its way into assets like equities, which drove stocks from Europe to the US, to record highs. However, gold did not manage to attract a lot of money and international prices of gold fell for the first time in 12 years in 2013.