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Gold prices held steady on Monday amid a firm dollar, with markets anxiously awaiting the upcoming Federal Reserve meeting for insight on the timing of a potential U.S. interest rate hike.

"Basically investors are staying on the sidelines before all these key announcements and gold prices should naturally turn higher," said OCBC Bank analyst Barnabas Gan.

Gold still remains to be a safe haven asset owing to a sense of uncertainty and risk aversion in the markets right now, he said. "Investment demand for gold should pick up towards the U.S. presidential elections given the higher suspense ongoing in the issue," Gan added.

Speculators raised their net long positions in COMEX gold for the first time in four weeks in the week to Oct. 25, and cut it slightly in silver, U.S. Commodity Futures Trading Commission data showed on Friday.

The dollar edged up on Monday, staying on track for a monthly gain, but remained shy of recent highs as investors became less sure that Hillary Clinton would win the U.S. presidential election after the FBI's new probe into her private email use.

The dollar index, which tracks the greenback against a basket of six major currencies, added 0.1 percent to 98.418 .DXY =USD, up 3.1percent for October and likely to match May's gain, but below last Tuesday's nearly nine-month high of 99.119.

The dollar tumbled late on Friday after the U.S. Federal Bureau of Investigation revealed its probe of newly found emails related to Clinton's use of a private server, rocking the Democratic candidate's campaign just days ahead of the Nov. 8 election.

Reference: Reuters