Gold prices dipped slightly on Wednesday amid investor caution ahead of the Federal Reserve's interest rate decision, Reuters reports.

Players are also continuing to monitor the conflict between Israel and Iran.

The spot price of gold fell by 0.17% to $3,383 per ounce by 12:14 Moscow time. August futures dropped by 0.18% to $3,401.

In addition to geopolitics, market attention is focused on the two-day Federal Reserve meeting, which will conclude later today. The central bank is expected to keep rates unchanged, but investors will be looking for hints of a future interest rate cut.

"Traders are holding back from taking action ahead of the Federal Reserve's interest rate decision, while a slight revival in risk appetite in the stock markets is putting pressure on gold," said Ricardo Evangelista, senior analyst at ActivTrades.

S&P 500 futures rose by 0.2%, while Nasdaq futures increased by about 0.3%.

Meanwhile, the conflict between Israel and Iran continues to fuel geopolitical instability, which supports the gold market, Evangelista added.