Gold is poised to wrap up January with a slump, breaking a three-month upward trend on Wednesday, post hampered hopes of interest rate trim in March before Fed’s policy meeting scheduled to run during the day.

Spot gold muted at $2,037.30 per ounce, while U.S. gold futures edged up 0.3% to $2,037.30 per ounce.

Gold slumped 1.2% till now this month, post soaring to a peak in December, as Market bets on early rate cut were reconsidered.

Fed policymakers plan to consider all available options and base their decision for the March meeting on the arrival of macroeconomic data.

On Wednesday, FOMC meeting comes to an end after two days. Chair Jerome Powell's news conference at 1930 GMT will be closely monitored for clues about when the Fed will decrease interest rates this year, even though it is likely to hold them steady.

The dollar index put gold under pressure for touching gains not seen since September, while US treasury yields touched two-week low 3.9920%.