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Gold slipped on Tuesday as the dollar steadied, with markets on edge ahead of a meeting this week that could see oil producers curb output. Spot gold was down 0.2 percent at $1,191 an ounce by 0559 GMT. It gained 0.9 percent in the previous session.

"People will be likely watching the OPEC (Organization of the Petroleum Exporting Countries) meeting. If the meeting leads to higher oil prices, that should have some inflationary pressure across the global economies, especially the U.S. and that could lead to lower gold prices," said Barnabas Gan, an analyst at OCBC Bank in Singapore.

"Gold could see a better tone this week assuming that the dollar takes a bit of a breather from its upward advance and if U.S. equity markets pause after several weeks of heady gains," INTL FCStone analyst Edward Meir said in a note. "The wild card remains oil. A failure by the OPEC to agree on a credible production cut could send prices (oil) sharply lower and drag down gold with it."

"The probability of a rate hike is 100 percent. Market watchers are looking for a hike and that's why prices are so weak - under $1,200," OCBC analyst Gan said.

Reference: Reuters