Gold prices erased their gains on Wednesday after the U.S. Federal Reserve announced it raised its benchmark short-term interest rate by a quarter percentage point.
The Fed also indicated that two more rate increases are likely.
Spot gold was down 0.08 percent at $1,294.70 an ounce at 2:17 p.m. ET, down nearly 0.3 percent from shortly before the Fed's announcement.
U.S. gold futures for August delivery were 0.11 percent lower at $1,298 per ounce.
The dollar, which measures the greenback against a basket of six major currencies, was up 0.1 percent at 110.55 , after touching 110.68, its highest since May 23.
Gold is highly sensitive to U.S. interest rates, which lift the opportunity cost of holding non-yielding bullion and boost the dollar, in which it is priced.
The European Central Bank (ECB) meets on Thursday, when it could signal intentions to start unwinding its massive bond-purchasing program.
The Bank of Japan's two-day monetary policy meeting also begins Thursday.
The yellow metal is expected to drop sharply towards a range of $1,263-$1,278 per ounce as its consolidation within a wedge is ending, Reuters technical analyst Wang Tao said.
In other precious metals, silver flattened out at $16.854 an ounce. It hit a seven-week high of $16.95 in the previous session.
Palladium was down 0.86 percent at $1,009.
Platinum was 0.49 percent higher at $898.40 per ounce, after hitting a one-week low of $889.40 earlier in the session.