Spot gold was up 0.1 percent at $1,108.58 an ounce.
"There is a greater consensus that there is going to be a further decline in financial asset classes (equities) this year," said Ross Norman, CEO of bullion broker Sharps Pixley.
"But I don't think we are going to see Armageddon or a complete wipe-out; more likely a correction in the markets."
U.S. gold for February delivery settled up 0.8 percent at $1,105.30 an ounce.
Traders awaited the Fed's statement on Wednesday after a two-day meeting as expectations for a March rate increase started to fade. Economists polled by Reuters now forecast three hikes in 2016 rather than the four initially floated by the Fed.
"The key question is whether the central bank will continue its rate hiking cycle in March or postpone it until June or later," said Fawad Razaqzada, technical analyst for Forex.com, adding that the probability of a hike in March is below 30 percent and around 50 percent in June.