"That (rate rise) is pretty much factored in to the market now," a trader said.
The dollar was last at $1.3031/35, little changed against either the euro or yen ahead of the rate decision from the US Federal Reserve due at 1915 GMT.
The Fed was expected to raise rates for a sixth time since June, taking the benchmark rate to 2.5 percent.
Markets were keen to see if the US central bank would make any changes in its campaign of measured tightening to combat inflation. Aggressive monetary tightening would lure money into US dollar deposits and boost the currency, dulling gold's appeal.
Similarly, traders were eyeing US President George W. Bush's State of the Union address later in the day for signals on what Washington might do to tackle its deficits.
Investors were also awaiting the release of US jobs data on Thursday and a meeting of the Group of Seven rich nations due later in the week.
Analyst James Moore of TheBullionDesk.com said bullion should find support at $418 if the dollar rose on the rate decision.
"But if the dollar does start to motor higher then gold is likely to test chart support at $414 and potentially $409," he said in a daily report.
Silver was quoted at $6.73/6.76 compared with $6.70/6.73 late in New York on Tuesday.
Platinum settled back after hitting a two-month high on Tuesday at $882.00, with the metal unlikely to get past that level quickly.
Spot platinum was quoted at $869.00/873.00, down from $873.50/878.50 previously, while palladium stood at $184.00/189.00 from $187.50/192.50.