Gold prices inched up on Tuesday as the dollar edged lower with investors awaiting cues from a series of upcoming central bank policy meetings and US economic data.

Of the various central bank policy meetings due this week the Federal Open Market Committee meeting due Tuesday and Wednesday will be closely monitored for clues on the timing of a possible interest rate hike.

October US non-farm payrolls data is due Friday

Spot gold was up 0.13 per cent at $1278.99 per ounce by 0733 GMT while US gold futures for December delivery rose 0.52 per cent to $1279.70

Momentum at present seems to be favouring upside for gold and silver although we are climbing at snails pace MKS Group trader Alex Thorndike said in a note.

We anticipate volatility to perhaps pick up into the Presidential election date next week.

Spot gold may break resistance at $1280 per ounce and rise more to the next resistance at $1293 as suggested by its wave pattern and Fibonacci ratio analysis according to Reuters technical analyst Wang Tao.

Markets were pricing in around a 78 per cent chance the Fed will raise rates in December but just a 6 per cent chance of a hike this week according to the CME Groups FedWatch Tool.

Gold is highly sensitive to rising rates which lift the opportunity cost of holding non-yielding assets such as bullion while boosting the dollar in which it is priced.

Gold is highly sensitive to rising rates which lift the opportunity cost of holding non-yielding assets such as bullion while boosting the dollar in which it is priced.

The dollar index which measures the greenback against a basket of major currencies inched lower by about 0.1 per cent at 98.332.

The dollar index has fallen about 0.5 per cent since Fridays opening after the FBI revealed it reopened an investigation of US Democratic presidential candidate Hillary Clintons use of a private email system.

Certainly the FBIs probe into Clintons emails makes things more uncertain with people locking into gold for a little while I think said Ronald Leung chief dealer at Lee Cheong Gold Dealers in Hong Kong.

Among other precious metals silver was up about 0.5 per cent at $17.95 per ounce.

Platinum rose 0.56 per cent to $982.00 per ounce and palladium gained 0.77 per cent to $623.25.