Gold: Rise and Fall

Gold hovering ahead of Tuesday's Federal Open Market Committee meeting, which will offer hints as to the dollar's outlook and determine the metal's next direction.

Physical buyers may buy gold on a price dip, but dealers said many jewellery makers were already well stocked ahead of Christmas.

"I think the market will remain a little bit choppy ahead of that and probably find direction thereafter, given all the speculation that has been in the market in recent times about what the Fed is going to do next," said Darren Heathcote of Investec Australia in Sydney.

Spot gold rose as high as $630.30 an ounce, hit a low of $628.30 and was at $629.60/631.10 an ounce by 0341 GMT, slightly higher than $629.20/630.70 late in New York.