Gold prices edged up on Tuesday as investors awaited further clarity on US-China trade talks and awaited key US inflation data due later in the week that could provide insight into the Federal Reserve's future interest rate decision.

Spot gold was up 0.2% at $3,333.89 an ounce, as of 0818 GMT, after dropping as low as $3,301.54 earlier in the session.

US gold futures were steady at $3,354.70.

"Gold prices found a bottom amid dip buying although the rally lacked conviction. Fiscal concerns and Fed rate cut bets were the catalysts for the recovery," said Jigar Trivedi, senior commodities analyst at Reliance Securities.

Top officials from the world's two largest economies sought to defuse a bitter dispute that has spilled over from tariffs to restrictions on rare earths, with trade talks stretching into a second day in London.

In April, the U.S. and China imposed tit-for-tat tariffs, sparking fears of a trade war. But last month, the two countries agreed to temporarily suspend tariffs on each other, offering some relief to financial markets.

Investors now await the Consumer Price Index (CPI) on Wednesday for analysis of the Fed's policy path.

The CPI report will be one of the last key pieces of data before the Fed's June 17-18 meeting, with the U.S. central bank widely expected to keep interest rates steady.

Elsewhere, spot silver fell 0.6% to $36.51 an ounce, holding at a more than 13-year high. Platinum fell 1.1% to $1,206.42, after hitting its highest since May 2021, while palladium fell 1% to $1,063.22.

"Overall, the lack of interest in recent macro data has left silver and platinum in the spotlight, both trading sharply higher in recent sessions before some signs of profit-taking emerged in today's session so far," said Ole Hansen, head of commodity strategy at Saxo Bank. (alg)

Source: Reuters