PRECIOUS-Gold holds ground as investors assess new US tariff proposals

*

Trump unveils 25% tariffs on Japan, South Korea

*

Higher tariff rates to take effect from August 1

*

Fed to release minutes from latest meeting on Wednesday

(Updates for Asia mid-session trading)

By Anmol Choubey

July 8 (Reuters) - Gold prices were little changed on Tuesday, caught between safe-haven demand following U.S. President Donald Trump's new tariff proposals for Japan, South Korea, and others, and rising Treasury yields that capped any upside momentum.

Spot gold eased 0.1% to $3,330.71 per ounce as of 0434 GMT. U.S. gold futures was steady at $3,340.70.

On Monday, Trump began telling trade partners that sharply higher U.S. tariffs would start on August 1, marking a new phase in the trade war he launched earlier this year, with tariffs on goods from Japan and South Korea set at 25%.

The August 1 deadline for implementing the tariffs was firm, Trump said, adding that he would consider extensions if countries made proposals.

"Reciprocal tariffs" were capped at 10% until July 9 to allow for negotiations, but only agreements with Britain and Vietnam have been reached so far.

"Traders seem relatively unfazed by Trump's tariff letters, and with safe-haven demand largely contained at this point, gold is still just biding its time, waiting for a topside breakout to potentially occur," KCM Trade Chief Market Analyst Tim Waterer said.

The higher bond yields and resilience in Asian markets to tariff developments are curbing gold's immediate upside potential, Waterer added.

The yield on benchmark U.S. 10-year notes hovered near a two-week high. Higher yields increase the opportunity cost of holding non-yielding bullion.

Meanwhile, China warned the Trump administration against reigniting trade tensions by restoring tariffs on its goods next month, and threatened to retaliate against nations that strike deals with the U.S. to cut China out of supply chains.

Trump's tariffs have stoked inflation fears, further complicating the Federal Reserve's path to lower interest rates.

The minutes of the Fed's June meeting, due on Wednesday, should offer more clues into the central bank's policy outlook.

Spot silver added 0.1% to $36.77 per ounce, platinum fell 0.2% to $1,367.34 and palladium rose 0.2% to $1,113.06. (Reporting by Anmol Choubey in Bengaluru; Editing by Sumana Nandy and Subhranshu Sahu)