Gold ended higher on Wednesday, as lingering tensions over Ukraine and a dollar drop prompted bargain hunting and short-covering after bullion prices fell to an earlier 2-1/2 month low.
The yellow metal was under pressure earlier after Russian President Vladimir Putin said on Wednesday a deal to end fighting in eastern Ukraine could be reached this week. However, Ukraine's prime minister later rejected Putin's proposals, saying they were an attempt to deceive the West on the eve of a NATO summit.
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Muted response from physical buyers despite Tuesday's 1.7 percent drop and heightened geopolitical tensions suggested gold's upside could be limited, analysts said.