Gold edged higher on Wednesday, supported by a weaker dollar after mild U.S. inflation data cemented bets for an interest rate cut in September, while investors awaited this week's U.S.-Russia talks over the war in Ukraine.

Spot gold was up 0.3% at $3,355.30 per ounce, as of 0651 GMT. U.S. gold futures for December delivery gained 0.2% to $3,405.50.

"The fall in the USD enabled a moderate bounce in the gold price, with the precious metal oscillating around the $3,350 level ahead of the Trump-Putin meeting on Friday," said Tim Waterer, chief market analyst at KCM Trade.

"If the meeting in Alaska doesn't resolve anything and the war in Ukraine continues, gold could be making a push back towards $3,400 once again."

The summit between U.S. President Donald Trump and Russian President Vladimir Putin "is a listening exercise for the president," the White House said on Tuesday, tempering expectations for a quick Russia-Ukraine ceasefire deal.

Data released on Tuesday showed that the U.S. Consumer Price Index (CPI) rose 0.2% in July, following a 0.3% increase in June. On a year-over-year basis, the CPI climbed 2.7%.

The dollar index extended declines, making greenback-denominated assets more affordable to holders of other currencies.

Markets are pricing in about a 90% chance of a Federal Reserve rate cut in September, with at least one additional reduction expected by the end of the year. Non-yielding gold thrives in a low-interest-rate environment.

Easing trade tensions in the market, the United States and China have extended a tariff truce for another 90 days, staving off triple-digit duties on each other's goods.

Investors are now awaiting more U.S. economic data due later this week, including the U.S. Producer Price Index, weekly jobless claims, and retail sales.

Elsewhere, spot silver climbed 1.2% to $38.35 per ounce, platinum gained 1% to $1,348.70 and palladium rose 0.8% to $1,138.04.

Source: Reuters