PRECIOUS-Gold prices rebound as US dollar, Treasury yields retreat

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US PPI data due at 1230 GMT

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US consumer prices rise in June

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Dollar slips from one-month high

(Updates for Asia market close)

By Brijesh Patel

July 16 (Reuters) - Gold rose on Wednesday, supported by a pullback in the U.S. dollar and bond yields, while investors digested data showing an increase in U.S. consumer prices last month and awaited further clarity on U.S. President Donald Trump's trade policy.

Spot gold was up 0.5% at $3,339.88 per ounce, as of 0644 GMT. U.S. gold futures edged 0.3% higher to $3,346.70.

The dollar index eased from a one-month peak, making gold more attractive for other currency holders. Benchmark U.S. 10-year Treasury yields retreated from multi-week highs.

"Many countries are still negotiating with the U.S. on the tariffs. There are still a lot of uncertainties in the market and many are looking for safe havens," said Brian Lan, managing director at GoldSilver Central, Singapore.

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 that he was open to further negotiations.

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 Fed should bring down interest rates now.

The U.S. central bank will probably need to leave 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 a safe haven during times of economic uncertainties, tends to do well in a low-interest-rate environment.

Market focus now shifts to the U.S. Producer Price Index data due at 1230 GMT on Wednesday for more cues.

Elsewhere, spot silver gained 0.5% to $37.88 per ounce. Platinum rose 0.3% to $1,376.75 and palladium eased 0.1% to $1,204.97.

(Reporting by Brijesh Patel in Bengaluru; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)