Bullion has been trading around $4,000 since last weekend, with financial markets struggling to find new clues amid the US government shutdown and lack of new data.
At 9.20am, gold was at $3,987, down 0.38% since it opened early Tuesday in Asian trading.
Investors are now taking cues from the Fed's monetary policy announcements and Jerome Powell's hawkish tone during his press conference, raising doubts about the next rate cut.
As a result, the US dollar traded strongly with the USD Index (DXY) back above 100 points and the stock market remained under pressure with US indices mixed.
Economic data showed that US manufacturing output was fairly stable in October, with the S&P Global Manufacturing Purchasing Managers' Index (PMI) revised upwards to 52.5, surpassing the expected 52.2.
Typically, the first week of each month is a highlight for US jobs data, but most of it will not be released this time around amid the federal shutdown.
For now, the market’s focus will be on the Reserve Bank of Australia (RBA), which is expected to announce its decision on monetary policy on Tuesday morning.
The RBA is widely expected to keep rates on hold, which should have limited impact on financial markets.
