* Spot gold had dropped 0.2 percent to USD 1,105.40 an ounce by 0024 GMT, after losing 0.3 percent on Friday.
The metal had fallen to USD 1,098.35 in the previous session, its lowest since August 11.
* US gold edged up 0.2 percent to USD 1,104.90.
* The Fed will kick off a two-day policy meet on Wednesday, with a statement expected on Thursday.
* Gold prices have been hurt this year by uncertainty over the timing of the Fed's first rate hike in nearly a decade.
Oil markets edged up in early Asian trading on Monday, with US crude contracts receiving support from reduced American drilling, although weakening demand weighed on international markets.
US crude futures CLc1 were trading at USD 44.86 per barrel at 0215 GMT, up 23 cents from their last settlement, pushed by a slight fall in drilling activity.
The global crude benchmark Brent LCOc1 was trading at USD 48.18 a barrel, up 4 cents from its last close. "Baker Hughes reported US oil rig count fell 10 to 652 last week.
The consecutive second decline suggests a low price environment coupled with low oil price hedge is starting to impact US supply," ANZ bank said on Monday.
The International Energy Agency (IEA) said on Friday that a cut in production from non-OPEC suppliers, especially from the United States, would lead to a rebalancing of the market by next year. The outlook for oil markets outside the United States remained weak, however, as high production clashed with stalling demand, creating a market in which more oil is produced than needed.
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