At the time of writing, gold futures rose 0.4% to $3,395.50 per ounce and spot gold climbed 0.6% to $3,356.05 per ounce, after hitting its lowest level since 1 August.

"Gold was on the back foot to start the day, but... was able to reverse course with buyers stepping up to around $3,330 as a value play. US treasury yields gave up some of Friday's gains which also helped to make life easier for the gold price," KCM Trade chief market analyst Tim Waterer said.

Peace proposals on the table include Russia ceding control of small, currently occupied territories, while Ukraine would forgo larger sections of its eastern regions that Russia has so far failed to seize. The proposals were reportedly discussed between Trump and Russian president Vladimir Putin during their summit in Alaska. “Hope over fears,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

She added: "Gold demand remains strong — showing investors are cautious ahead of Trump’s meeting with Zelensky. Material progress could spark further oil weakness, a rally across equities, and softer gold demand. Disappointment would bring oil bulls back, pressure equities (except defense), and lift gold."