As markets awaited any hints on American monetary policy this week, gold prices barely changed on Tuesday. In contrast, copper prices modestly declined after China lowered its lending guideline for the first time in ten months.

Spot gold dipped 0.1% to $1,948.72 per ounce, meanwhile gold futures slipped 0.1% to $1,960.15 per ounce.

Fed and economic unpredictability maintain gold's holding pattern, Wednesday's testimony before Congress by Federal Reserve Chair Jerome Powell could provide additional hints about American monetary policy after the central bank stopped raising interest rates last week.

However, gold fell as a result of the Fed also signaling a higher peak interest rate this year, which may signal additional hikes as the bank fights stubborn inflation.

A tight trading range has been maintained for the past month in the price of gold due to uncertainty over rising interest rates and conflicting indications of a likely recession this year.

Although gold's gains have been constrained by the possibility of rising interest rates, the yellow metal has continued to be supported by some safe-haven demand as investors prepared for a possible recession this year.