Gold prices firmed on Wednesday as investors stayed cautious amid lingering uncertainty over the U.S.-China trade truce and waited for key U.S. inflation data for clues on the Federal Reserve's interest rate trajectory.

Gold futures fell slightly, as apparent progress in U.S.-China trade talks likely sapped some enthusiasm for safe-haven assets like gold.

Gold advanced even after the US and China said they had agreed on a plan to ease trade tensions during talks in London.