Tuesday saw a minor uptick in gold prices, which had been rising sharply earlier in the week due to growing demand for the yellow metal as a safe haven and enduring hopes of a less dovish stance from Fed.

Spot gold advanced by 0.2% to $2,032.60 per ounce, meanwhile gold futures added 0.4% to $2,050.35 per ounce.

Early on Monday, gold saw an unusually strong spike in spot prices, which momentarily reached a lifetime high of $2,148.78 an ounce before plunging dramatically from the peak.

The Federal Reserve's considerably less hawkish signals, which raised projections for early interest rate decreases by the central bank, were the main driver of the spike among other causes.

Demand on gold soared as a safe haven after an attack on US ships in the Red Sea raised fears of a wider Middle East conflict. Some concerns about supply interruptions in the gold markets were also raised by an unrelated, separate attack on a well-known gold mine in Peru.

The projections of the US non far payrolls figures for the upcoming friday tapered the latest bolstered hopes on early interest rate trims by Fed.