Aug 12 (Reuters) - Gold prices edged higher on Tuesday after U.S. inflation data sustained expectations of Federal Reserve interest rate cuts, while attention turned to other key economic data due this week.
Spot gold was up 0.1% at $3,348.24 an ounce at 9:17 a.m. EDT (1317 GMT).
The dollar eased , making bullion cheaper for buyers holding other currencies.
The U.S. consumer price index rose 0.2% last month after gaining 0.3% in June. For the 12 months through July, the CPI advanced 2.7%. Economists polled by Reuters had forecast the CPI rising 0.2% in July and increasing 2.8% year on year.
"Inflation numbers appear mixed but are supportive of rate cuts," said RJO Future market strategist Bob Haberkorn. "Traders remain cautious as we’re at a critical point and awaiting further economic indicators."
Traders maintained bets on September and December U.S. rate cuts after the CPI data. Lower interest rates increase the appeal of gold as it yields no interest.
Other data due this week includes the U.S. producer price index, weekly jobless claims and retail sales.
"The biggest negative factor for gold will be if (Fed Chair Jerome) Powell indicates that they're not going to cut rates ... The U.S.-China trade developments are on the back burner for now," Haberkorn added.
On the tariffs front, the United States and China have extended a tariffs truce for 90 days, staving off triple-digit duties on each other's goods.
U.S. gold futures for December delivery dipped 0.2% to $3,397.50 an ounce. Prices dropped more than 2% on Monday after U.S. President Donald Trump said on social media that he would not impose tariffs on imported bullion. A report that Washington had imposed tariffs on imports of 1kg bullion bars sent U.S. gold futures to record highs on Friday.
Among other metals, spot silver gained 0.4% to $37.74 an ounce, platinum lost 0.2% to $1,324.47 and palladium dropped 0.6% to $1,128.75.
Reporting by Ashitha Shivaprasad in Bengaluru Editing by David Goodman
