Gold prices drifted higher in range-bound trade during Europe's session on Tuesday, as investors waited for the outcome of the Federal Reserve and Bank of Japan policy meetings on Wednesday for further trading cues.

Gold for December delivery on the Comex division of the New York Mercantile Exchange inched up $2.00, or 0.15%, to trade at $1,319.80 a troy ounce by 3:55AM ET (07:55GMT).

The U.S. dollar index, which measures the greenback's value against a basket of six major currencies, fell 0.2% to 95.60 early Tuesday. On Friday, it touched 96.11, its strongest level since September 1.

Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.

The market is also waiting for the outcome of a Bank of Japan policy meeting on Wednesday, with speculation rife that the Japanese central bank will make crucial changes to its easing program.

RI GROUP NEWS