Tuesday saw a little decline in gold prices, offsetting a brief recovery as markets remained preoccupied with talks to raise the U.S. spending ceiling. In contrast, copper prices were steady after suffering significant losses in recent sessions.

Spot gold slid 0.1% to $1,970.45 per ounce, while gold futures dipped 0.3% to $1,972.25 per ounce.

The demand for the yellow metal as a safe haven decreased owing to the encouraging remarks made by Republican and Democratic politicians about a prospective agreement as well as House Speaker Kevin McCarthy's assertion that a U.S. default was unlikely.

The debt limit concern hasn't provided much support for gold over the previous week, but strong profit-taking has brought the yellow metal down from record highs set earlier in May.

As negative figures from the U.S. and China continued to trickle in, concerns over slowing economic growth weighed heavily on industrial metal prices.

As investors assume that U.S. interest rates would likely stay higher for longer, the dollar's resilience in recent sessions has strengthened, which has pushed on metal prices.