Gold prices remained hovering around the same price despite volatile movements ahead of the FOMC policy meeting and the release of key economic data.
Rounding out the Asian session, the yellow metal traded little changed at $1,982 an ounce, while gold futures traded at $1,991 an ounce.
The $2,000 price level remains a wall for the precious metal from moving higher despite repeated tests.
As fears of a banking crisis eased, investors let go of safe-haven holdings.
This follows reports that JP Morgan Chase has taken over troubled First Republic Bank last week.
Investors are now more cautious towards the interest rate decision by the Federal Reserve (Fed) early Thursday morning which is expected to see an increase of 25 basis points.
In addition, the release of the US NFP employment data is also the focus of investors to examine whether the labor market in the world's giant economy remains strong amid higher interest rates.
