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 for clues on the Federal Reserve's future interest rate decision.

Spot gold was up 0.3% at $3,336.33 an ounce, as of 1224 GMT, after falling as low as $3,301.54 earlier in the session. US gold futures were up 0.1% at $3,357.20.

"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.

The U.S. and China imposed tit-for-tat tariffs in April, 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 Consumer Price Index data on Wednesday for analysis of the Fed's policy path.

The CPI report will be one of the last major pieces of data before the Fed's June 17-18 meeting, where the Fed is widely expected to keep interest rates on hold.

Spot silver was steady at $36.72 an ounce, near a more than 13-year high. Platinum fell 0.1% to $1,218.85, after hitting its highest since May 2021. Palladium fell 1.4% to $1,059.02.

"Overall, the lack of interest in recent macro data has allowed silver and platinum to take centre stage, both trading much 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