Gold pared gains as markets weighed prospects for a truce in Ukraine after the Kremlin confirmed Presidents Vladimir Putin and Donald Trump would hold talks in the next few days.

Bullion traded near $3,373 an ounce after earlier rising as much as 0.8%. Russia's announcement came a day after Putin met with Trump's envoy, Steve Witkoff, for almost three hours as the US pushed for an end to the Ukraine war. 

Bloomberg earlier reported that the Kremlin is considering options including an air truce, falling short of committing to a total ceasefire. Any easing of geopolitical tensions can curb demand for haven assets, pulling gold prices down.

Traders are also watching US relations with global trading partners — marked this week by tariff hikes on Indian goods — and the likely nomination of a temporary Federal Reserve governor who may be more aligned with Trump's monetary agenda. Lower rates typically boost gold, which doesn't pay interest.

Bullion has climbed almost 30% this year, though the bulk of those gains occurred in the first four months as geopolitical and trade tensions rattled the market.  

Spot gold rose 0.1% to $3,372.70 an ounce as of 12:05 p.m. in London. The Bloomberg Dollar Spot Index slipped 0.1%. Silver and palladium gained, while platinum fell. 

Source: Bloomberg