Gold rose on Monday, after touching a two-week low in the prior session, as the dollar softened, but caution ahead of the U.S. Federal Reserve's monetary policy decision kept a lid on prices.

The Fed is set for a lively debate when it meets on Sept. 20-21 and could give a clear signal of an interest rate rise to come even if it follows market expectations for a pause this month. Economists polled by Reuters are increasingly expecting a rate hike this year, but only in December.

"Gold has seesawed for the last week purely because of the fact that market watchers are waiting for the Fed meeting later this week," said OCBC Bank analyst Barnabas Gan. "Do expect gold prices to be extremely volatile towards the meeting."

Spot gold was up 0.4 % at $1,315.60 an ounce by 0453 GMT, not far from a low of $1,306.26 hit on Friday, the weakest since Sept. 1. U.S. gold futures rose 0.7 % to $1,318.90 an ounce.Spot gold may edge up to $1,319, as it has cleared a resistance at $1,313, a Reuters technical analyst said.For more Information Visit Us:- ripplesadvisory.com/free-trial.php and miss call -9827808090.       

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 1.11 percent to 942.61 tonnes on Friday.