The yellow metal slides ahead of Fed meeting

Gold slipped below $1200 an ounce ahead of the awaited Fed meeting later on today.

Spot gold is traded at $1198.69 recording a high of $1201.87 and a low of $1197.04. The shiny metal is currently facing downside pressure after the rally seen last week which encouraged many investors to close positions and lock profits.

However, eyes are on Bernanke's announcements today as projections are in favor of another round of stimulus in addition to keeping interest rate near zero to boost growth after the slowdown witnessed in the second quarter.

The latest news from the U.S. reflected the weakness in labor market as non-farm payrolls showed a drop of 131,000 in July from 71,000 in June following a series of dismal reports which raised concerns with regard the outlook of the world's largest economy. GDP is estimated to reach 2.4% compared with Jul's forecasts of 2.7%, while some economists expect the U.S. to fall back in recession next year.

Precious-Gold took advantage of the debt woes in Europe as it visited its all time high in June and now may benefit from worries with regard recovery in the U.S. as safe-haven. However, the rebound in dollar eroded demand on dollar-denominated commodities.

Yesterday, gold shed $4.50 or 0.37% to close at $1201.15 an ounce. Gold Price was setin London on Thursday at $1203.00 per ounce during the PM fixing declining from $1206.00 during the AM fixing.

The dollar index, which tracks the dollar movements versus six major currencies, rebounded for the second day on Tuesday to 80.97 from a low of 80.07 recorded on August 6.

The greenback's come back halted also oil's rally as the black gold fell today to $80.77 a barrel from the day's opening at $81.45.

Among other precious metals, platinum slid to $1539.00 from $1547.70 on Monday; palladium fell to $473.80 from $478.75; and silver retreated to $18.17 from $18.35, as of 07:50 GMT.