Spot gold is slightly higher Monday in a quiet start to the week, as market participants await the Federal Reserve meeting Tuesday.

The euro's strength against the dollar is supporting gold, and analysts said they expected the Fed's comments this week will further weaken the dollar and indirectly boost gold.

At 1013 GMT, spot gold was trading at $1,206.22 a troy ounce, up 0.1% on the day. The EUR/USD was at $1.3273, down a tad from $1.3279 at the close on Friday.

Gold traded above $1,200/oz Friday for the first time in four weeks, and on Monday was managing to stay above that key psychological level. However, the metal ran into resistance at the 50-day moving average of $1,210.92/oz, said Credit Suisse analyst Tom Kendall in London. "We're in a little pause ahead of (the meeting)."

The Federal Open Market Committee will announce its interest rate decision Tuesday. The Fed may lower its growth outlook on the U.S. economy and possibly discuss measures to stimulate growth, analysts said.

"Any additional quantitative easing is likely to be interpreted as bearish for the dollar," said Kendall, adding this would be bullish for gold.

UBS analyst Edel Tully said investor demand for gold will increase the longer the metal stays above $1,200/oz, even though physical demand will ease and scrap sales may pick up. In a report Monday, Tully reiterated the bank's one-month forecast of $1,230/oz.

In other precious metals, spot silver was 0.14% higher at $18,483/oz, spot platinum was 0.7% lower at $1,552.75/oz, and spot palladium was 0.6% lower at $485.03/oz.

-By Matthew Walls, Dow Jones Newswires; +44 (0)20 7842 9412; matthew.walls@dowjones.com