Gold prices held close to a two-month low on Tuesday as optimism over a US debt ceiling deal and reduced bets for a pause in the Federal Reserve's rate hike policy in June dented the metal's appeal. Spot gold was down 0.2% at $1,938.57 per ounce by 0448 GMT. US gold futures dipped 0.3% to $1,938.30, Reuters reported. US President Joe Biden said on Monday he feels good about prospects for passage by Congress of the debt ceiling deal that he reached with House of Representatives Speaker Kevin McCarthy.