Gold prices fell slightly on Tuesday, sticking over the lowest level in 2 months amid optimism over a debt ceiling deal and as expectations of more interest rate hikes by the Federal Reserve spurred flows into the dollar.

Spot gold slipped 0.2% to $1,941.51 per ounce; meanwhile gold futures dipped fell 0.2% to $1,959.50 per ounce.

The two benchmarks were gearing towards1 month and half low.

The yellow metal fell from a peak touched previously this month as investors shifted their allegiance to the greenback in response to a series of hawkish comments from Fed officials. Additionally, despite the fact that attitude deteriorated due to concern of a U.S. debt default, there was little purchase of gold during this period.

However, policymakers appear to have made some headway in raising the debt ceiling and avoiding a potentially disastrous default, gold is under even more pressure due to the increased demand for risky assets.