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Gold prices flitted within a narrow range on Wednesday as investors awaited key U.S. inflation data for insights into the potential scale of a Federal Reserve rate cut next month.

Spot gold was steady at $2,635.56 per ounce, as of 0222 GMT, moving largely within a slim $9 range during the session. Bullion hit over one-week low on Tuesday.

U.S. gold futures rose 0.6% to $2,635.80.

"There's the geopolitical element to all of this, which is to say that some selling pressure has emerged because of the ceasefire agreement with Israel and Lebanon," said Kyle Rodda, financial market analyst at Capital.com.

U.S.-France brokered ceasefire between Israel and Iran-backed group Hezbollah took effect at 0200 GMT on Wednesday.

Gold is traditionally considered a safe-haven investment during periods of economic and geopolitical uncertainty, including trade wars and other conflicts.

"In the long run, I think Trump's trade-war may be positive for gold because of higher debt loads and a touch of dedollarisation," Rodda added.

Investors digested a handful of economic data on Tuesday indicating the economy remained on solid footing.

Federal Reserve officials were divided on further rate cuts at their meeting earlier this month, but agreed to limit guidance on the future direction of U.S. monetary policy.

Markets currently sees a 63% chances of a 25-basis-point rate cut by the U.S. Federal Reserve in December, as per the CME group's FedWatch tool.

Traders will closely monitor core PCE figures, initial jobless claims and GDP (first revision), set for release later in the day.

Elsewhere, China's net gold imports via Hong Kong in October fell from September and were down 43% from the previous year, data showed.

Spot silver edged 0.1% lower to $30.39 per ounce, platinum was flat at $927.45 and palladium was down by 0.4% to $973.50.