Gold prices were slightly higher on Tuesday and the dollar traded weak as traders looked ahead to the Federal Reserve's monetary policy decision on Wednesday.
Spot gold was up 0.4 percent at $1,962.26 per ounce, while U.S. gold futures were up 0.1 percent at $1,964.
While the Fed is widely expected to raise interest rates by another 25 basis points, traders will pay close attention to the accompanying statement for clues about the outlook for rates.
Investors are pinning hopes that softening inflation gauges might allow the Fed room to hint at a pause in the monetary policy tightening cycle.
The European Central Bank (ECB) and the Bank of Japan (BOJ) are also scheduled to announce their monetary policy decisions this week.
Traders have priced in a quarter-point hike from the ECB while the BOJ is expected to stick to its ultra-loose policy.
Meanwhile, the dollar traded weak on improved risk sentiment after China's Politburo - the top decision-making body of the Communist Party - promised more policy measures aimed at the country's biggest growth engines - real estate and private consumption, both of which have deteriorated substantially over the past three years.
The U.S. house price index for May and U.S. consumer confidence numbers for July are slated for release in the New York session later in the day.
