Gold prices fell to their lowest since mid-June on Wednesday after Ukraine said it had reached an agreement with Russian president Vladimir Putin on a "permanent ceasefire" in its eastern Donbass region.
Prices had moved higher in earlier trade in a recovery from the previous day's 1.8 per cent fall, but quickly pared gains as European stocks rose and German Bund futures fell.
Spot gold hit a low of $1,261.19 an ounce, and was down 0.1 per cent at $1,263.60 an ounce at 0835 GMT.