Gold prices inched higher on Tuesday while the dollar slipped after U.S. President Donald Trump pledged security guarantees to Ukrainian President Volodymyr Zelenskiy in any peace deal with Russia.

Spot gold edged up by 0.2 percent to $3,337.93 per ounce in European trade, while U.S. gold futures were up 0.1 percent at $3,382.32 per ounce.

Trump described his latest meeting with Ukrainian President Volodymyr Zelenskyy and European partners on Monday as 'very good" and said he's begun arranging a meeting between Zelensky and Russian President Vladimir Putin, possibly within the next two weeks.

Zelensky said he is open to "any format" of talks and would decide on the trilateral meeting based on how the first round goes.

In economic news, traders look ahead to the Jackson Hole summit for signals on the path of interest rates.

Fed Chair Jerome Powell's speech during the Jackson Hole, Wyoming, conference between August 21 and 23, could offer more clarity on the economic outlook and the central bank's rate trajectory.

Powell is expected to unveil the Fed's new policy framework to achieve stated inflation and employment goals.

According to CME Group's FedWatch Tool, there is an 83.2 percent chance the Fed will lower interest rates by a quarter point at its next monetary policy meeting in September.

The day's economic calendar remains light, with a report on new residential construction likely to garner some attention in the New York session.

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