US gold futures were down 0.3% at $1,507. "The market is relatively stable, there is so much (interest) pointed towards the Fed meeting tomorrow, it seems like traders have taken a little bit of a pause," said OANDA senior market analyst Craig Erlam. "Gold got a bit of a bounce yesterday from the geopolitical (fallout) from the attacks, but it didn't even break the $1,520 level on the news, which suggests that gold is a little vulnerable, with $1,480 being the key support level."
"It appears conviction remains positive so long as gold hangs around $1,500," AxiTrader strategist Stephen Innes said in a note, adding that the market has been caught between hedging against a possible US military response on Iran and position-squaring ahead of the Fed's meeting. On the technical front, spot gold looked neutral in a range of $1,488-$1,523.61, an escape from which could suggest a direction, according to Reuters technical analyst Wang Tao.