On Tuesday, the price of gold remained within a narrow range, but it appeared that it had found new support due to the ongoing decline in the value of the dollar. In contrast, the price of copper suffered severe losses due to worries about China, a major copper importer.

Spot gold traded flat at $1,955.32 per ounce, meanwhile gold futures edged up by 0.1% to $1,958.65 per ounce.

The dollar fell to 15-month lows after a string of weak U.S. inflation readings increased speculation that the Federal Reserve was about to achieve its peak interest rate level for the year. The yellow metal tracked this decline in the dollar and traded near one-month highs.

The price of the yellow metal likewise seemed to have found support around or over $1,950 per ounce, holding it well above year-earlier lows and close to a record high.

But in anticipation of a widely watched Fed meeting next week, gold prices stagnated around these levels as they awaited further signs from the government. The outlook for gold was also constrained by the potential for longer-term rate increases and by indicators of economic resiliency in the United States.