Earlier, bullion fell as much as 0.6% after statements from Washington and the Elysee that both the US and Russia had agreed to a summit to resolve the military crisis.
"Not only do the events on the Ukrainian border have investors seeking out safe-havens, but it (gold) also offers inflation protection," analyst at OANDA says.
The metal rose to near the strongest level since 2008 as traders assessed the possible impact of a potential easing of geopolitical tensions over Ukraine.