Gold prices rose on Wednesday as investors remained cautious as uncertainty over a US-China trade truce lingered ahead of key inflation data that could provide clues on the Federal Reserve's next policy move.

Spot gold was up 0.7% at $3,344.93 an ounce, by 0808 GMT. US gold futures were up 0.7% at $3,366.40.

US and Chinese officials said on Tuesday they had agreed on a framework to get their trade truce back on track and remove restrictions on China's rare earth exports. However, the talks have provided little sign of a lasting resolution to long-running trade differences.

In April, the US and China imposed retaliatory tariffs, sparking a trade war. After talks in Geneva last month, the two countries agreed to reduce tariffs from their triple-digit levels.

"The market is well aware that the path to a trade deal between major economies is not an easy one," said Han Tan, chief market analyst at Exinity Group.

"Gold will remain supported as long as global trade tensions risk escalating further, or even remaining elevated for a longer period."

The U.S. consumer price index report due at 1230 GMT could give investors more clues on the U.S. Federal Reserve's policy path.

"The market is expecting a rise in the CPI figure, which should keep the Fed's rate cut case in check," Tan added.

The Federal Reserve will keep interest rates on hold for at least a few more months, according to most economists polled by Reuters, as the risk of inflation surging again as President Donald Trump's tariff policies persist.

Elsewhere, spot silver fell 0.1% to $36.54 an ounce, near its highest in more than 13 years. "We expect silver to reach $38/oz in the coming months. Market deficit considerations and USD weakness are key to higher prices—a test of $40/oz is possible," UBS said in a note. Platinum rose 2.9% to $1,257.06, its highest since May 2021. Palladium gained 2.1% to $1,081.90. (alg)

Source: Reuters