Singapore - Gold ticked up on Tuesday after a drop from a two-week high spurred bargain hunting, but investors were reluctant to make big bets ahead of the US Federal Reserve's policy meeting, which could determine the fate of the dollar.
The Fed is expected to commit to buying between $250bn and $2 trillion in Treasury debt over coming months to spur a flagging economy when it announces a second round of monetary easing on Wednesday.
Gold added $5.75 to $1 356.00 an ounce by 05:37 am in slow trade. It had hit a two-week high at $1 365.49 in Asia on Monday, but then suffered from a lack of follow-through buying.
Gold struck a record around $1 387 last month.
"People are bit more cautious in buying. We don't know what the US is doing out there and we've got the election tonight," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.
"There will be short covering and then we'll wait for the outcome tomorrow night," said Leung, referring to the Fed meeting.
US gold futures for December delivery rose $5.6 an ounce to $1 356.2 after rising as high as $1 366.40 on Monday, its strongest since October 19.
Silver was steady but off a 30-year peak hit on Monday, while palladium slipped from a 9-year high. Platinum was off a four-week high seen on Monday.
The dollar kept a tenuous grip on overnight gains on Tuesday, buoyed by surprisingly strong US manufacturing data but the upside is seen limited ahead of the Fed policy meeting.
The US congressional election is due on Tuesday, but analysts said the outcome is unlikely to have any immediate impact on currencies.
Americans unhappy with the US economy are poised to hand control of the US House of Representatives to Republicans in the elections that are shaping up as a rebuke of President Barack Obama, a Reuters/Ipsos poll found on Monday.
The physical sector in Hong Kong and Singapore slowed to a trickle before the Fed meeting, but top consumer India could make last-minute purchases before the Diwali festival of lights later this week.
"There's no buying interest ahead of the Fed meeting, but we did see light sales of scraps yesterday," said a physical dealer in Singapore.
India's gold imports in October rose to 43 tonnes provisionally, above a Reuters poll forecast of 41.5 tonnes, as a good monsoon and investment appeal drew consumers to the metal despite high prices, the president of the Bombay Bullion Association said.