Gold retreated in Asian trade Tuesday, ahead of a crucial US Fed policy meeting.

Gold for immediate delivery was seen trading at $1199.74 an ounce at 12.00 noon Singapore time while US gold futures for December delivery was at $1201.8 an ounce.

Analysts said investors are hopeful of Fed taking steps to ease monetary policy later in the day, boosting bullion's safe-haven appeal.

The euro slipped against the dollar while the Nikkei edged up, but the market was split on whether the Fed's meeting will take any new steps in quantitative easing.

On Monday, gold had fallen slightly as a firmer dollar prompted investors to lock in profits ahead of a closely watched statement by the Fed.

Gold for December delivery fell $2.70 to settle at $1,202.60 an ounce, while silver for September delivery fell 23 cents to settle at $18.242 an ounce. September copper settled 1.1 cents higher at $3.3540 a ounce.

Assets in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, were unchanged at 1,282.75 metric tones.

Holdings have been little changed since dropping 18.55 tones on July 28, the most in more than two years.

Federal reserve Gold