Gold is trading lower today as investors remain cautious ahead of much anticipated Interest Rate Decision of the Federal Reserve Bank scheduled for 19:00 GMT. The bank is expected to keep policy on hold. Yesterday gold climbed by almost 1% on mixed U.S. data casting shadows on the economic outlook of the U.S. The wording of the FOMC statement will be closely watched to get further indications on when the FED is going to raise benchmark interest rates from near zero levels. It's the first statement after the SNB's move to scrap the exchange floor for the franc and after the ECB announced quantitative easing.

Gold prices rose nearly 9 percent this year, after declining for two consecutive years, ending 2014 almost flat. Speculations that the FED will hold back its benchmark interest-rate hike till the end of the year further helped gold but the forecast for the current year remains uncertain.

The precious metal is currently quoted at USD1,287.20, -0,46% a troy ounce. On Thursday last week gold reached a five-month high at USD1,307.40.