The most active gold contract for February delivery fell 1.9 dollars, or 0.13 percent, to close at 1,478.70 dollars per ounce.
U.S. stock market investors have remained upbeat after Beijing and Washington agreed last week on the text of a phase one economic and trade agreement.
The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite Index extended gains before gold's settlement on Wednesday.
When equities post gains, gold usually falls as investors are not necessarily looking for a safe haven.
Additional pressure came from a rising U.S. dollar. The dollar index, a gauge of the greenback against a basket of its peers, rose further to around 97.40 on Wednesday, which will make dollar-priced gold more expensive for investors holding other currencies.
As for other precious metals, silver for March delivery was down 2.3 cents, or 0.13 percent, to close at 17.049 dollars per ounce. Platinum for January delivery went up 5.9 dollars, or 0.63 percent, to settle at 935.70 dollars per ounce.
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