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

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