By 10:16 am EST (1516 GMT), benchmark April delivery gold was down $1.80 at $422.30 an ounce on the New York Mercantile Exchange's COMEX division, in a tight band between $424.10 and $421.80.
Renewed vigour in the dollar pressured gold, though the metal was propped above Monday's nadir at $421.50 which marked the lowest since January 10, dealers said.
"The market's kind of subdued, though the dollar is getting a push on the upside and there is a downturn in oil, which has put pressure on the gold the last few days," said Frank Aburto, trader with F.C. Stone in New York.
A rising US currency tends to depress dollar-denominated gold because it gets costlier for overseas buyers. And lower crude oil detracts from gold's safe haven appeal among investors as a hedge against inflation.
Markets widely expect the Fed to announce a quarter-point rate increase at about 2:15 pm EST (1915 GMT) Wednesday. However, players are also interested in the language accompanying the decision for clues about how the central bank will proceed for the year.
Spot gold hardly budged, hovering at $420.80/1.60 versus Monday's New York close at $422.25/3.00. The afternoon London fix was at $420.90.
COMEX March silver slipped 0.2 cent to $6.745 an ounce, dealing from $6.76 to $6.68. Spot silver fetched $6.72/75, which matched yesterday's last New York quote. Tuesday's fix was $6.70.
NYMEX April platinum was $2.20 higher at $876 an ounce. Spot platinum was worth $874/878.
Thinly traded March palladium climbed $1.10 to $191.50 an ounce. Spot changed hands at $188/192.