Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,344.30 during U.S. afternoon hours, down 0.09%.
Gold prices hit a session low of USD1,334.70 a troy ounce and high of USD1,359.40 a troy ounce.
Gold futures were likely to find support at USD1,310.10 a troy ounce, the low from Oct. 22, and resistance at USD1,361.70, Monday's high.
The December contract settled down 0.50% at USD1,345.50 a troy ounce on Monday.
The Federal Reserve on Wednesday left its key benchmark lending target, the fed funds rate, unchanged at 0.25% and kept its USD85 billion monthly asset-purchasing program in place.
The Fed said the economy was showing signs of improvement though it still faced enough headwinds to prompt monetary authorities to hold off on tapering its asset purchases, namely fiscal uncertainties that continue to drag on recovery.
Stimulus tools such as asset purchases aim to drive recovery by keeping long-term interest rates lower, weakening the dollar in the process, making gold an attractive hedge.
"Economic activity has continued to expand at a moderate pace. Indicators of labor market conditions have shown some further improvement, but the unemployment rate remains elevated," the Fed said in a statement.
"Available data suggest that household spending and business fixed investment advanced, while the recovery in the housing sector slowed somewhat in recent months. Fiscal policy is restraining economic growth."
While stimulus tools such as monthly asset purchases tend to bolster gold prices, and while Wednesday's announcement came as little surprise to investors, many felt the statement wasn't as dovish as anticipated.
Past statements have shown the Fed was concerned that fiscal uncertainty was threatening to slow job creation, a point the U.S. central bank did not address this month, which gave the dollar room to rise on sentiments that bond purchases may begin to taper soon.
Elsewhere, payroll processing firm ADP said U.S. non-farm private employment rose by a seasonally adjusted 130,000 in October, below expectations for an increase of 150,000.
The previous month's figure was revised down to a gain of 145,000 from a previously reported increase of 166,000.
A separate report showed that U.S. consumer prices rose 0.2% in September, in line with forecasts, after rising by 0.1% in August.
Elsewhere on the Comex, silver for December delivery was up 1.09% at USD22.737 a troy ounce, while copper for December delivery was up 1.11% and trading at USD3.314 a pound.
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