Bullion maintained its downward trend since the opening of the week as the US dollar's support continued amid positive geopolitical developments in US President Donald Trump's meeting with Putin, Zelenskiy and European leaders.
At 9.30 am, the price of gold was at $3,312.32, down 0.10% since it opened in early trading on Wednesday in the Asian session.
News of a possible settlement of the Russia-Ukraine conflict has weighed on gold prices, as investors began to withdraw their capital from safe assets as global conflict tensions escalated.
Last week, a meeting between President Donald Trump and Vladimir Putin set out the reasons and demands for an end to the war with Ukraine.
Subsequently, Trump met with Ukrainian President Zelenskiy and European leaders earlier in the week to set up a possible ceasefire and push for a trilateral meeting to begin negotiations more clearly.
Donald Trump in his speech said Putin and Zelenskiy should think long and ensure security guarantees for both countries. However, Moscow wants Ukraine not to join NATO and European countries do not supply them with ground troops.
Meanwhile, US housing data was mixed with July reporting a more than 5% increase and Building Permits declining.
Federal Reserve (Fed) Governor Michelle Bowman reiterated her stance on three rate cuts by the end of the year and stressed that the central bank should focus more on its employment mandate.
Ahead of the week, traders are watching the latest Fed meeting minutes and Fed Chairman Jerome Powell's speech on Friday.
