Spot gold was little changed at $1,778.01 per ounce by 12:22 am EDT (1622 GMT), giving up some gains from earlier in the session as the dollar recouped initial declines.
The softer dollar, down 0.1pc, reduced gold's cost for holders of other currencies. Markets broadly shrugged off U.S. PMI data showing factory activity at a record high in June.
Weakening physical demand and slowing speculative flows into gold, both of which began before the Fed meeting, could also help to drive a further pullback, Ghali added.
Spot gold fell 0.7pc to $1,863.98 per ounce by 1:43 p.m EDT (1743 GMT) after hitting its lowest level since May 17 at $1,848.49. U.S. gold futures settled 0.7pc down at $1,865.9.
The failures indicate an extension of the correction from the June 1 high of $1,916.40. Three waves make up the correction. The third wave labelled c is unfolding.
"I expect gold to jump around in a choppy $1,860 to $1,900 range this week, with last week's high at $1,917 an ounce unlikely to be retested this week."