Tuesday saw a slight decline in gold prices, though futures still outperformed spot rates in most cases, while rising prospects for additional Chinese stimulus measures supported copper prices.

Gold futures slumped 0.4% to $2,002.25 per ounce mean while spot gold dropped 0.1% to $1,964.14 per ounce.

On Monday, the closely-watched $2,000 per ounce mark for the yellow metal's December contracts was broken amid rising expectations that the Federal Reserve will begin to moderate its hawkish attitude by the year's end.

However, actual gold prices continued to trade considerably behind futures due to uncertainty about the central bank's near-term stance, particularly in the lead-up to important U.S. payrolls data this week.

Gold had slight losses on Tuesday due to a strengthening dollar as reports indicated tightening credit conditions in the United States due to high interest rates. 

Key nonfarm payrolls figures for July, which are due this Friday, have the markets' full attention right now. Given that it gives the Fed more justification to keep raising interest rates, any indications of sustained growth in the jobs market are likely to put pressure on gold.

Through 2022, rising interest rates had a negative impact on gold prices. This year, however, advances in the yellow metal have been constrained due to higher opportunity costs associated with keeping non-yielding assets.