PRECIOUS-Gold nudges higher as focus turns to US tariff negotiations

July 16 (Reuters) - Gold prices edged higher on Wednesday, as investors digested economic data showing an increase in U.S. consumer prices last month and awaited further clarity on U.S. President Donald Trump's trade policy.

FUNDAMENTALS

* Spot gold XAU= was up 0.3% at $3,330.99 per ounce, as of 0052 GMT. U.S. gold futures GCcv1 were steady at $3,337.70.

* U.S. consumer prices increased in June by the most in five months amid higher costs for some goods, suggesting tariffs were starting to have an impact on inflation and potentially keeping the Federal Reserve on the sidelines until September.

* Following the data, Trump said that consumer prices were low and the U.S. Fed should bring down interest rates now.

* The U.S. central bank will probably need to leave interest rates where they are for a while longer to ensure inflation stays low in the face of upward pressure from the Trump administration's tariffs, Dallas Fed Bank President Lorie Logan said.

* Gold, often considered as a safe-haven asset during times of economic uncertainties, tends to do well in a low-interest-rate environment.

* Focus now shifts to U.S. Producer Price Index data due at 1230 GMT on Wednesday for more cues.

* Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1. However, Trump said on Monday he was open to further negotiations.

* Keeping gold gains in check, the dollar .DXY and benchmark U.S. 10-year Treasury yields US10YT=RR held near multi week highs. USD/ US/

* Spot silver XAG= gained 0.2% to $37.81 per ounce after hitting its highest level since September 2011 on Monday. Platinum XPT= eased 0.2% to $1,369.42 and palladium XPD= slipped 0.6% to $1,198.62.